CLI’s financial statement said the “Group’s policy is to build a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Group monitors its capital using a net debt-to-equity ratio.
"The Group seeks to strike a balance between the higher returns that might be possible with higher level of borrowings and the liquidity and security afforded by a sound capital position.
"In addition, the Company has a share purchase mandate as approved by its shareholders which allows the Company greater flexibility over its share capital structure with a view to improving its return on equity.”
CLI’s net debt to equity in FY2024 fell to 0.39x as at end-2024 compared to 0.56x as at end-2023.
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During a results briefing on Feb 27, management reiterated its target of $200 billion in funds under management by 2028, and its operating earnings to more than $1 billion by 2028-2030, with 60% to 70% coming from its four fee income-related businesses (FRB) of fees from listed REITs, private funds, commercial management and lodging management.
“We see CLI as a compelling opportunity heading into ex-dividend in May with patient investors being paid to wait while it pursues its acquisition to scale up its private funds business,” Song says in his report.
