CapitaLand Investment reverses year-ago loss with $647m second-half profit

For the full FY2021, the group's revenue increased by 15.6 per cent year on year to $2.29 billion. PHOTO: CAPITALAND

SINGAPORE (THE BUSINESS TIMES) - CapitaLand Investment (CLI) on Friday (Feb 25) swung to a second-half net profit of $647 million from a net loss of $680 million in the same period a year ago.

Earnings per share for the six months to Dec 31, 2021, was 15.3 cents, compared with a loss per share of 24.3 cents in the second half of financial year 2020.

The real estate investment manager's revenue for the period rose 26.2 per cent year on year to $1.24 billion from $986 million.

This was due to the fee income-related business and the real estate investment business both recording top-line growth. Revenue was underpinned by higher transactional fee income, improved operating performance from lodging assets with the easing of travel restrictions, and contributions from newly acquired assets in China and the United States.

The CLI board is proposing a dividend of 12 cents per share and a special dividend of three cents, bringing full-year dividend to 15 cents, subject to shareholder approval.

For the full 2021 financial year, the group's revenue increased by 15.6 per cent year on year to $2.29 billion.

CLI noted better operating performance in Singapore, China, Europe, Britain, the US and Australia, emphasising the consolidation of a business park property in China and a lodging group in Australia.

Net profit came to $1.35 billion in FY2021, reversing a net loss of $559 million in FY2020.

The group is cautiously optimistic in its outlook, citing the lifting of travel and mobility restrictions in many markets in the last quarter of FY2021, while noting rising energy prices and ongoing supply imbalances likely driving up near-term inflation and interest rates.

However, CLI said it is committed to achieving sustainable double-digit return on equity by growing its fund and lodging management platforms, as well as recycling at least $3 billion worth of assets annually.

The group will also continue to work towards its goal of $100 billion in funds under management by 2024 by enhancing its private equity fund-raising and research capabilities, expanding product offerings and extending its network of capital partners globally.

Mr Lee Chee Koon, group chief executive of CLI, said: "As part of our growth strategy, we will focus on expanding and diversifying our investor base and network of international partners as we scale up our private equity business, tap new fund-raising channels and launch new funds, even as we remain disciplined in our portfolio reconstitution and capital recycling strategies."

The counter finished at $3.63, down 13 cents or 3.5 per cent, on Thursday.

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