CapitaLand Investment 9M revenue dips 3% to S$1.5 billion despite growth in fee-related business

[SINGAPORE] CapitaLand Investment (CLI) posted a 3 per cent year-on-year decline in total revenue to S$1.5 billion for the nine months ended September, even as fee-related revenue grew 15 per cent over the same period.

The decrease in overall revenue came as contributions from its real estate investment business fell 23 per cent to S$580 million, from S$753 million in the year-ago period, mainly due to the absence of contributions following divestments and deconsolidation, the asset manager said in a business update on Wednesday (Nov 4).

This included the absence of contributions from Synergy and Dalian IT Park, which was partially offset by contributions from the One iPark development-for-sale assets.

Meanwhile, fee-related revenue rose 15 per cent on the year to S$1.04 billion for the nine-month period, from S$900 million previously, driven by growth in its listed and private funds management business.

Fee-related revenue from listed funds management rose 30 per cent year on year to S$336 million from S$258 million, supported by stronger recurring fees and higher event-driven fees.

Private funds management revenue grew 32 per cent on the year to S$133 million from S$101 million, on higher contributions from its credit business and SC Capital Partners, as well as increased performance fees.

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

Commercial management revenue rose 8 per cent year on year to S$304 million from S$282 million, supported by positive leasing and operational momentum, while lodging management revenue edged up 1 per cent to S$262 million.

Second China C-Reit listing

CLI is now targeting the listing of its second China commercial real estate investment trust (C-Reit), CapitaLand Commercial C-Reit II, by the end of 2026, subject to market conditions.

The group had previously expected the listing to proceed in the second or third quarter of 2026. In June 2026, CLI secured regulatory registration approval for the proposed Reit, which will be seeded with Raffles City Shenzhen and CapitaMall Fucheng in Sichuan province.

SEE ALSO

CapitaLand Investment appoints banking veteran Hsieh Fu Hua as chairman from Jan 1, 2027

The two properties have a combined appraised value of about 4.8 billion yuan (US$719 million), with a proposed fundraising size of nearly 3.9 billion yuan.

Separately, CLI launched the 1.2 billion yuan China Rental Housing Fund I, the third sub-fund under its RMB Master Fund series, as it continued to deploy capital through the platform.

The group said it would continue to advance the monetisation of assets held by China AssetCo through capital-recycling platforms, including C-Reits, private Reits and renminbi-denominated funds, as well as third-party sales. It is also pursuing longer-term strategic pathways for its China AssetCo.

Meanwhile, CLI continued its capital raising, deployment and recycling activities amid market uncertainty, raising about S$4.3 billion in equity across its listed and private funds between Jan 1 and Nov 3.

Over the same period, the group deployed about S$9.6 billion and divested S$5.7 billion worth of assets.

Transaction activity across its listed funds more than doubled year on year to S$10.7 billion, comprising S$7.2 billion in investments and S$3.5 billion in divestments.

The investments spanned commercial properties, business parks and logistics, living and digital infrastructure assets, while divestments focused on mature and non-core properties.

In its private funds business, the group raised about S$2 billion in commercial, living and credit strategies, compared with S$2.1 billion in the corresponding period last year.

It also launched its third Asia-Pacific real-estate credit fund, ACP III, and established a student accommodation platform in Hong Kong, seeded with a conversion project in Sheung Wan that will deliver about 1,200 beds.

Meanwhile, the group’s net debt-to-equity ratio stood at 0.46 times as at end-September, compared with 0.43 times at end-2025.

Its implied borrowing cost declined to 3.5 per cent per annum from 3.9 per cent, while operating cash flow rose to S$721 million for the nine months, from S$646 million in the year-ago period.

Shares of CLI ended Tuesday flat at S$2.38.