CapitaLand Investment Delivers Steady Growth and Strategic Portfolio Shifts in 2025

Key Financial Highlights and Developments from DBS Regional Property Conference 2026

CapitaLand Investment Limited (CLI) reported continued disciplined execution and strategic portfolio transformation for the year-to-date (YTD) September 2025, providing investors with a comprehensive update on its operational results, capital management, and growth strategies.

Financial Performance Overview

• Total revenue for YTD Sep 2025 reached S\$1.57 billion. This marks a stable performance despite sectoral shifts, with fee-related revenue (FRR) rising 7% year-on-year to S\$882 million, fueled by higher event-driven fees from listed funds and contributions from newly established funds.
• Real estate investment business (REIB) revenue declined 12% year-on-year to S\$753 million. The decrease was attributed to the deconsolidation of CapitaLand Ascott Trust (CLAS) and strategic asset divestments, including the redeployment of Dalian Ascendas IT Park into a China domestic fund.
• Fee income-related business now constitutes 54% of total revenue, overtaking real estate investment business at 46%.

Capital Raising and Fund Management Momentum

• CLI raised a total of S\$3.7 billion in equity across both listed and private funds in 2025.
  • Private funds raised S\$2.1 billion, reflecting robust investor interest in regional thematic and country-focused strategies. Notable developments include the closing of China Business Park RMB Fund IV and ongoing launches within the CLI RMB Master Fund series.
  • Listed funds raised S\$1.6 billion in equity, supporting strategic acquisitions and debt repayments.
• CLI monetized S\$2.3 billion worth of assets YTD 2025, with approximately 30% coming from CLI’s balance sheet and S\$0.5 billion from China, highlighted by the divestment of Dalian Ascendas IT Park.
• Successful listing of CapitaLand Commercial C-REIT (CLCR) in September 2025, China’s first international-sponsored retail C-REIT, raised RMB2.3 billion (about S\$440 million), which was 7% above initial estimates. The IPO opened 20% above its offer price, with an estimated distribution yield of 4.40% for 2025 and 4.53% for 2026.
• Private funds continue to scale, with follow-on funds in credit, logistics (India), and self-storage (Extra Space Asia) programs actively deploying capital. The CapitaLand Ascott Residence Asia Fund II (CLARA II) achieved a final close with S\$850 million in commitments, underscoring ongoing investor confidence.

Operational Highlights and Asset Performance

• Portfolio optimization and capital recycling remain core to CLI’s strategy. Listed funds (CLAR, CLCT, CLINT) recycled S\$780 million in assets after 1H 2025, with CLINT’s first divestment since its 2007 listing, indicating active asset management.
• Total listed funds FUM reached S\$73.6 billion. Portfolio occupancy maintained at over 90%, with average interest cost at 3.9% and gearing at 40%.
• Lodging management delivered stable performance:
  • Lodging management fee-related revenue rose 5% year-on-year, supported by higher occupancy (+1pp) and average daily rates (+1%).
  • CLI signed c.13,500 lodging units across 64 properties YTD Sep 2025, with 5,800 units opened, marking an expansion in Europe (notably Vienna and Seville) and surpassing 200 Citadines-branded properties globally.
  • RevPAU growth was strongest in Japan/Korea (+11%) and Europe (+6%), while Singapore saw a slight decline due to a strong prior year boosted by major events.
• Commercial management fee-related revenue remained steady, with 250 properties under management and strategic partnerships, including a RM1.2 billion GDV mixed-use development with Astaka in Malaysia.
• Operational metrics across markets:
  • Retail occupancy and traffic showed positive trends in Singapore, China, and other APAC markets.
  • Office and logistics assets maintained high occupancy rates, with positive rental reversions in India, China, Southeast Asia, and the USA, but mixed trends in Australia, Korea, and UK/Europe.
  • Asset recycling initiatives included investing in self-storage, logistics, and data centres, and divesting IT parks in India.

Capital Management and Debt Profile

• CLI maintains a strong balance sheet with S\$6.4 billion debt headroom, a net debt/equity ratio of 0.43x, and 73% of debt on fixed rates. Interest coverage ratio stands at 3.8x, with average debt maturity at 3.2 years.
• S\$4.3 billion in sustainability financing was raised YTD 2025, supporting green and sustainable projects.
• Plans in place for refinancing/repayment of S\$0.3 billion in debt due in 2025, representing just 4% of total on-balance sheet debt.

Strategic Positioning and Growth Outlook

• CLI’s business model focuses on an integrated ecosystem leveraging fee-income growth across listed funds management, private funds management, lodging management, and commercial management.
• Geographical diversification strategy: CLI aims to increase exposure to Australia, Japan, Korea, India, Europe, UK, and USA by 2028, while reducing reliance on China and Southeast Asia. Primary growth drivers include data centres, lodging & living, logistics, self-storage, wellness, and private credit.
• CLI’s global data centre business now comprises 27 assets, with S\$6 billion AUM and 800MW gross power, serving major multinational cloud and telecom customers across Asia and Europe.

Shareholder Considerations & Price Sensitive Developments

• Successful CLCR listing in Shanghai, with IPO price surge and robust investor demand, signals strong market confidence and could positively impact CLI’s share value.
• Significant capital recycling and asset monetization, including the sizable divestment of assets in China and India and redeployment into higher-yielding strategies, may re-rate CLI’s valuation.
• Accelerated capital raising and fund scaling, especially in private funds and new thematic vehicles, highlight CLI’s ability to tap diverse capital sources and drive future earnings growth.
• Debt headroom and stable financial metrics, together with strong sustainability financing, enhance CLI’s resilience amid volatile market conditions.
• Strategic reduction in China exposure, and increased allocation to developed markets, data centres, and alternative assets, indicate a proactive shift to more stable and higher-growth sectors.
• Robust operational performance in lodging and commercial management, with new signings and resilient RevPAU, support future revenue streams.

Conclusion

CapitaLand Investment’s 2025 performance and strategic initiatives underscore its transition to a global asset manager, with fee income now driving the majority of revenue, active portfolio optimization, and proactive capital management. The successful CLCR listing, strong fundraising momentum, and expansion into new markets and asset classes are all potential catalysts for share price appreciation. Investors should monitor CLI’s ongoing asset recycling, fund launches, and geographical rebalancing, which may impact future growth and valuation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. All forward-looking statements are subject to risks and uncertainties, and actual outcomes may differ materially from projections.

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