CapitaLand Investment expects ‘significant’ fall in net profit for FY2023

CAPITALAND Investment expects to report a “significant” decrease in net profit for FY2023 compared to last year.

The real estate investment manager provided the profit guidance in a regulatory filing on Friday (Dec 8) and expects fair value losses on its portfolio of investment properties, primarily those in China, Australia, Europe, the United Kingdom and the United States.

CapitaLand Investment had, in its third-quarter business update published in November, pointed out a dampening macro-economic sentiment together with persistently higher interest rates and geopolitical tensions.

It flagged challenges for deal making, fundraising and operational pressures – particularly in the above-mentioned markets along with potential significant valuation risks.

CapitaLand Investment is in the process of finalising valuations, and added that the fair value losses are non-cash in nature and arose mainly due to higher capitalisation rates and weaker market sentiments.

Core operating earnings, nonetheless, have not been significantly impacted and operating cash flow remains stable, the Straits Times Index constituent said in the filing.

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CapitaLand Investment expects to release its financial results for FY2023 in February 2024.

Its shares closed unchanged at S$3.10 on Friday before this profit guidance was published.