CapitaLand Investment’s H1 profit falls 19% to $351 million on lower portfolio gains
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CapitaLand Investment raised $1.3 billion from international institutional investors for three of its private funds.
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SINGAPORE - CapitaLand Investment (CLI) posted a 19 per cent drop in net profit to $351 million for its first half ended June 30, from $433 million in the previous corresponding period.
This was mainly due to lower portfolio gains amid a prudent deal-making environment, which slowed down asset-recycling transactions, the property giant said in a regulatory filing on Friday.
Earnings per share stood at 6.9 cents for the half year, down from 8.4 cents the previous year.
Revenue for the first half of the year fell 0.7 per cent to $1.345 billion, from $1.354 billion a year earlier.
This was due to decreased contributions from CLI’s real estate investment business, partially offset by increased contributions from its fee income-related business.
No dividend was declared for the half year, unchanged from the year before.
In a separate announcement, CLI said it raised $1.3 billion in third-party equity commitment from international institutional investors for three of its private funds in the first eight months of 2023.
The amount comprises $870 million for its CapitaLand China Opportunistic Partners Programme, $134 million for its flagship regional core-plus fund, CapitaLand Open End Real Estate Fund, and $263 million for its new India business park development fund, CapitaLand India Growth Fund 2.
Excluding CLI’s own equity contribution, this brings its total equity raised in the year to date to $3.2 billion, which the group noted was a 28 per cent increase from the $2.5 billion in equity raised over the full year of 2022.
As at June 30, the property giant’s funds under management for its private funds amounted to $29 billion, up from $26 billion in the first half of 2022.
“Looking ahead, we expect the pace of capital recycling to improve… we will also intensify our efforts to raise domestic capital to support our China business, further diversify our portfolio and scale up our business globally,” said CLI group chief executive Lee Chee Koon.
The counter was down five cents, or 1.6 per cent, at $3.18 at the close of trading on Friday. THE BUSINESS TIMES
