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CapitaLand Investment Reports 13% Profit Drop Amid Strategic Shifts

CapitaLand Investment reports H1 2025 net profit of S$287M, down 13% YoY, amid strategic portfolio restructuring and Clas deconsolidation. Core business shows resilience with 7% underlying growth.

ParWei-Ling Tan
Publié le
#singapore-business#real-estate#corporate-earnings#property-investment#capitaland#business-restructuring#singapore-property#investment-management
Image d'illustration pour: CapitaLand Investment H1 profit down 13% at S$287 million on lower revenue

CapitaLand Investment headquarters in Singapore's Central Business District

SINGAPORE - CapitaLand Investment (CLI) reported a net profit of S$287 million for the first half of 2025, marking a 13% decline from S$331 million in the previous year, as the real estate giant navigates strategic portfolio adjustments and market challenges.

Key Financial Highlights

The company's revenue experienced a 24% decrease to S$1.04 billion, down from S$1.37 billion in H1 2024. This decline primarily stems from the deconsolidation of CapitaLand Ascott Trust (Clas) and asset divestments in the US and China. The results follow a broader trend of strategic repositioning among Singapore's leading property developers.

Strategic Portfolio Adjustments

Following CLI's December 2024 sale of approximately 4.9% stake in Clas, the group's financial structure underwent significant changes. The deconsolidation resulted in a revenue decline of S$322 million and a reduction in earnings before interest, taxes, depreciation, and amortisation of S$161 million. This strategic move aligns with Singapore's evolving corporate governance landscape.

Operational Performance

Excluding the impact of divestments and Clas deconsolidation, CLI's core revenue would have shown a 7% increase, equivalent to S$69 million. This growth was driven by:

  • Higher fee income from fee income-related business
  • Improved performance of lodging properties
  • Enhanced operational efficiency in real estate investment segments

Cost Management and Administrative Efficiency

Administrative expenses decreased to S$222 million from S$231 million, reflecting effective cost management strategies. This optimization comes as to maintain operational efficiency amid market challenges.

Market Response and Future Outlook

CLI's shares closed at S$2.82, showing a 2.5% increase, suggesting market confidence in the company's strategic direction despite the profit decline. The company maintained its position of not declaring dividends for the six-month period, consistent with its previous year's approach.

Wei-Ling Tan

Tech and economy specialist, covering innovation in Southeast Asia from Singapore for both English-language and regional media outlets.