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
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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.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
