The market seems to think differently, with selling pressure forcing CLI shares down nearly 8% on May 2, the first trading day after CLI's results were released on April 30.
CLI reported a total revenue of $496 million for the quarter, a 24% y-o-y decline due to the deconsolidation of CapitaLand Ascott Trust(CLAS).
Likewise, revenue for its real estate investment business (REIB) declined 6% y-o-y for 1QFY2025 after adjusting for CLAS deconsolidation, mainly due to the divestment of on-balance sheet assets including 16 USA multifamily assets and Ascendas iHub Suzhou.
CLI has a remaining $4.3 billion of on-balance sheet assets as at end-1QFY2025, of which 75% are in China and the balance, diversified across Europe, USA, Southeast Asia and India.
See also: CapitaLand Investment to launch Shanghai-listed retail REIT
Fee income-related business (FRB) revenue, meanwhile, was 3% higher y-o-y at $281 million and accounted for 57% of revenue.
Net debt to equity declined to 0.39 times as at end-1QFY2025. CLI reiterated its strategy of investing for growth in thematics such as logistics and self-storage, living and wellness, private credit and data centres, while leveraging its balance sheet strength and strategic partnerships to scale funds under management.
Year to date, CLI has made some $1.5 billion worth of investments, of which 30% are by its listed funds.
CLI also announced in April the proposed establishment of the first international-sponsored China REIT to invest in income-producing retail properties in China. CLI, Capitaland China Trust (CLCT) and CapitaLand Development (CLD) plan to take a collective 20% stake in this REIT as a strategic investor. This initiative provides an additional platform for capital recycling and FUM growth for CLI, CLCT and its private funds, writes Lock.
As at 2pm, shares in CLI are trading 21 cents lower, or 7.64% down, at $2.54.
