CapitaLand Investment - DBS Research 2025-08-15: Looking Beyond A Weak First Half

• CapitaLand Investment’s 1H25 PATMI and operating PATMI of S$287mil and S$260mil were down 13% y-o-y and down 12% y-o-y, respectively.
• Headline PATMI was generally a miss at ~35% of our full-year estimates and ~30% of consensus. This was a result of a 24% y-o-y drop in revenue due to
  • - Read this at SGinvestors.io -
  • lower contributions from divested properties.
• However, performance should pick up in 2H25, driven by contributions from the group’s platform acquisitions of SC Capital (SCCP) and Wingate, which were completed in the latter part of the quarter.
• On a same-store basis, we note that revenues would have been ~7% higher y-o-y, mainly due to higher fee income from fee-related business (FRB) and the group’s REITs due to an increase in acquisition and asset recycling activities. Close to 60% of operating PATMI is anchored by fee income. Ascott also saw RevPAU rise 5% across its operating platform.

Focus for 2H25

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• driving FUM growth by leveraging higher capital growth via the SCCP and Wingate platforms.
• The group recently announced a strategic investment into India with an MOU signed with the Maharashtra Government, committing INR19,200 crores (S$2.83bn) by 2030 as part of the group’s overall strategy to increase capital allocation to India from S$8bn to S$15bn over time.

Our view

The slight earnings miss could mean a temporary weakness in share price in the immediate term.

• Read more at SGinvestors.io.

Derek TAN DBS Group Research | Tabitha FOO DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-08-15

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