CLI fee revenue up 10% in Q1 as property revenue softens 14%; war-driven inflation may weigh on asset operations

[SINGAPORE] CapitaLand Investment (CLI) recorded a fee-related revenue of S$310 million for the first quarter ended Mar 31, up 10 per cent from S$281 million in the year-ago period.

For the quarter, its total revenue stood at S$487 million, amid higher contributions from the fee-related business, which makes up 59 per cent of total revenue, CLI said in a business update on Wednesday (Apr 29).

This was partly offset by lower contributions from the real estate investment business, which declined 14 per cent to S$207 million from S$242 million. This segment makes up 41 per cent of total revenue.

CLI noted that the gains for the fee-related business were underpinned by its funds platform, amid increases across its listed funds management, private funds management and commercial management segments. As at Mar 31, total funds under management stood at S$50 billion. On Thursday, the global real estate group announced a deal to manage Income Insurance’s S$2.4 billion real estate investment portfolio.

For the quarter just ended, CLI attributed the lower real estate investment business revenue mainly to the absence of contributions, following the divestments of the Synergy platform – a US corporate housing asset, and Dalian IT Park. This was offset by the sale of legacy One iPark.

Over the past 16 months, CLI has completed “over S$12.1 billion” in Singapore deals. Last week, CapitaLand Integrated Commercial Trust announced the sale of Asia Square Tower 2 for S$2.5 billion and the acquisition of Paragon in Orchard Road, for S$3.9 billion.

For the first quarter juste ended, the lodging management segment posted a stable year-on-year performance. Revenue per available unit increased 3 per cent on the year amid a three percentage point rise in occupancy. The growth was led by the Japan and South Korea markets.

As at Mar 31, CLI’s interest coverage ratio stood at 3.9 times, compared with 4.2 times for financial year 2025.

It had an average debt to maturity of 2.9 years as at end-March, down from 3.1 years for the previous financial year, while its fixed-rate debt stood at 73 per cent, compared with 72 per cent for FY2025.

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Its operating cash flow stood at S$289 million, from S$255 million in Q1 2025.

Looking ahead, CLI noted that uncertain market conditions are expected to moderate the pace of capital raising and deployment, and said it intends to continue its focus on risk-adjusted returns. Potential inflation-driven cost pressures may weigh on asset operations, reinforcing ongoing portfolio optimisation and cost discipline.

It will continue to focus on lodging and living, logistics & self-storage, real estate credit in resilient markets including Singapore, Japan and Australia.

In a separate statement, CLI said its private placement of 326,087,000 new units has been issued at S$2.30 each. The units raised the total issued units to 7,951,526,086 and starts trading on Wednesday.

The counter ended Tuesday at S$2.81, down by 0.7 per cent or S$0.02.