CapitaLand Investment Limited FY2025 Results: Steady Growth Amid China Headwinds

CapitaLand Investment Limited (“CLI”) released its FY2025 results on 11 February 2026, providing a detailed view of its financial performance and operational highlights for the year. In this article, we break down the key metrics, analyze major business developments, and offer an investor-focused perspective on the outlook and recommended actions.

Key Financial Metrics

Performance Summary and Trends

CLI delivered a resilient set of results in FY2025 despite significant headwinds from China. Recurring fee income grew 6% YoY, driven by new private funds, strategic acquisitions (SCCP and Wingate), and higher contributions from listed funds. Operating PATMI also rose 6% to S\$539M. However, total PATMI plunged 70% to S\$145M, primarily due to higher revaluation and divestment losses in China. The company’s asset-light strategy and focus on third-party capital resulted in FUM scaling to S\$125B.

Dividends were maintained at 12 Singapore cents per share, underscoring CLI’s commitment to shareholder returns despite earnings volatility.

Segment and Asset Performance

• Fee-Related Businesses (FRB): Stable and growing, with FRR margin remaining strong at 36%. Lodging management and private funds saw notable YoY increases in revenues.
• Real Estate Investment Business (REIB): Operating EBITDA declined 29% YoY (ex-CLAS), reflecting asset divestments and reduced stakes in listed REITs. The decline was most acute in China due to revaluation losses, partially offset by gains in India and Singapore.
• Divestments: CLI completed S\$3.1B in divestments (down from S\$5.5B), constrained by the high China asset base and challenging market conditions. Plans are in place to accelerate capital recycling in 2026, especially in China.
• Fundraising: CLI doubled fundraising to S\$6.5B, mainly from private funds, with strong APAC investor support and successful launches of follow-on funds.

Exceptional Earnings, Expenses, and Asset Revaluations

• Revaluation/Impairment: CLI recorded S\$439M in revaluation/impairment losses for FY2025, mainly in China, offset by gains in Singapore and India.
• Portfolio Gains: Portfolio gains were significantly lower than the prior year (S\$45M vs S\$230M), with losses in China divestments outweighing gains from India, Japan, and the lodging Synergy-SilverDoor merger.
• China Headwinds: China assets registered an aggregate fair value loss of S\$545M due to soft leasing and market conditions.

Dividends

CLI proposed a 12 Singapore cents per share dividend for FY2025, consistent with the prior year. No special or distribution-in-specie dividends were declared this period.

Fundraising, Asset Sales, and Capital Management

• Fundraising Momentum: CLI secured S\$6.5B in new funds, up from S\$3.3B, with S\$4.9B from private funds and S\$1.6B from listed funds.
• Debt and Liquidity: CLI’s net debt/equity rose to 0.43x, remaining well within prudent limits. Debt headroom is ample, with S\$6.5B in cash and available facilities.
• Asset Recycling: Gross divestments totaled S\$3.1B, with a focus on China. CLI expects to accelerate divestments in FY2026, aligning with its domestic-for-domestic strategy.

Other Notable Developments

• M&A/Platform Acquisitions: Strategic acquisitions of SCCP and Wingate enhanced CLI’s fund management capabilities, adding fee streams and third-party capital.
• Lodging Growth: A record 19,000 units signed in 2025, with strong repeat business and pipeline visibility supporting future fee growth.
• Sustainability: CLI raised S\$5.7B in sustainable financing (up 33% YoY) and continued to make progress on carbon, energy, and water intensity reductions.
• Technology and AI: CLI reported >S\$12M in incremental revenue and >S\$5M in cost savings from digital and AI-led initiatives, including property management, marketing, and tenant engagement.

Chairman’s Statement

(No explicit Chairman’s Statement was provided in the report. This section is omitted.)

Historical Performance Trend

• FUM grew consistently from S\$87B in FY2021 to S\$125B in FY2025, with an ambitious S\$200B target for FY2028.
• Fee income and fundraising have shown steady YoY growth, while PATMI has been volatile due to market revaluations and divestments, especially in China.
• Dividend per share has remained stable at 12 cents since FY2021, reflecting a focus on maintaining shareholder payouts.

Outlook and Forecasts

CLI expects to accelerate divestments and capital recycling in China in FY2026. Management remains focused on growing fee-based income, expanding third-party capital, and pursuing asset-light strategies. The target is S\$200B in FUM by FY2028, underpinned by organic growth, new fund launches, and potential new REIT listings. Macro challenges in China are likely to persist but are expected to be balanced by strength in India, Singapore, and new funds management capabilities.

Conclusion and Recommendations

Overall, CLI’s FY2025 performance appears resilient, but near-term earnings are pressured by China revaluation losses. The underlying business model is robust, with strong recurring fee income, disciplined capital management, and visible growth in FUM and fundraising. The outlook is positive for recurring fee growth and capital recycling, but asset revaluation risks remain, especially in China.

For Current Shareholders:

• CLI remains a solid long-term holding for investors seeking recurring income and exposure to APAC real estate platforms.
• Maintain holdings, but monitor China-related risks and management’s execution on asset recycling and fee income growth.

For Potential Investors (Not Currently Holding):

• CLI offers exposure to a leading APAC real estate fund manager with a clear growth trajectory in fee-based income.
• Consider accumulating on weakness, especially if China valuations stabilize, but be mindful of short-term volatility from further write-downs or market uncertainties.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult a licensed financial advisor before making any investment decisions.

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