CapitaLand Investment’s operating patmi declined by 13% y-o-y to $287 million in 1HFY2025 ended June 30 while total patmi fell 12% y-o-y to $260 million. Total revenue declined by 24% y-o-y to $1,040 million.
This was lower than 1HFY2024 due to the loss of contributions from assets divested in 2024, lower fund performance and transaction fees, and absence of a one-off tax write-back in 2024. These were mitigated by contributions from new investments, improved performance from lodging properties and lower finance costs.
Operating patmi continued to be anchored by fee income-related business (FRB), which contributed about 60% to 1HFY2025 operating patmi.
Despite the sombre headline figures, CLI’s underlying fund management business continues to grow.
FRB revenue for 1HFY2025 grew by $3 million y-o-y to $564 million, driven by higher recurring fund management fees resulting from contributions from acquisitions by listed funds, the establishment of new private funds and new management contracts.
FRB revenue for 1HFY2025 comprised fee income from listed funds management of $151 million (1HFY2024: $146 million), private funds management of $54 million (1HFY2024: $64 million), lodging management of $172 million (1HFY2024: $166 million), and commercial management of $187 million (1HFY2024: $185 million).
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With the completion of the Wingate Group Holdings (Wingate) acquisition in June, integration efforts are underway to capture synergies to complement CLI’s expansion into private credit and growth in Australia.
Concurrently, CLI is working closely with SC Capital Partners Group (SCCP) to explore accelerating growth opportunities, following the completion of the 40% stake acquisition in March.
CLI will leverage Wingate’s and SCCP’s expertise and relationships to broaden CLI’s access to institutional capital and specialist capabilities across private credit, lodging and living, as well as value-add and opportunistic strategies.
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CLI’s lodging management business continued to grow through brand signings and property openings and is on track to meet its $500 million revenue goal by 2028. The commercial management business is also working to expand via new third-party contracts and partnerships in key markets.
CLI closed at $2.82 on Aug 13.
