- CapitaLand Investment’s very cautious guidance for the remainder of 2025 was a marked contrast to the overall positive tone during its annual results presentation only two months ago. This is an understandable development due to the US-China trade war that started in early-April, and could cap CapitaLand Investment's share price performance in the near to medium term.
A steady performance in 1Q25.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
The prevalence of the word “caution” was highly evident.
- During the company’s analyst briefing, the abundance of the word “caution” was noticeable.
- While CapitaLand Investment has a strong balance sheet that could enable it to capitalise on market opportunities, the US-China trade war that has flared up in the past month has led to a hesitancy in transactions. Thus, CapitaLand Investment stated that it will push such deals out into 3Q25 and onwards and has relooked at the pricing of current deals on its table. It also noted that in its fund-raising efforts, investors have been much slower in committing funds.
- CapitaLand Investment’s net debt/equity was 0.39x as at end-24 (end-23: 0.56x) which translates to S$7.4b debt headroom for growth should it choose to increase its net debt/equity to 0.9x.
Share buybacks unlikely in the near to medium term.
- Read more at SGinvestors.io.
