Report Summary

• CapitaLand Investment Ltd (CLI) reported mixed FY25 results, with strong fund management growth but pressured margins due to elevated costs and revaluation losses.
• Operating PATMI rose 6% YoY to SGD539m, with fee-related business revenue up 6% YoY, but EBITDA margins declined slightly across fund and lodging management segments.
• CLI’s funds under management (FUM) grew 7% to SGD125b, with a strategic target of SGD200b by 2028; management is confident of reaching SGD150-160b organically, leveraging both organic growth and acquisitions.
• Despite cost pressures and China headwinds, CLI continues to diversify its portfolio and scale its asset-light model, maintaining a stable dividend outlook and robust balance sheet for potential M&A.
• The report maintains a BUY rating, raising the target price to SGD3.40, reflecting confidence in CLI’s strategy and long-term growth potential, though near-term earnings may remain under pressure.