CapitaLand Investment to launch 2nd C-REIT even as net profit falls

Real asset manager saw 2025 total net profit tumble more than 69% from 2024

- Benjamin Lim Correspondent

CapitalLand Investment said its second commercial China real estate investment trust includes the Raffles City Shenzhen development (left), which comprises a mall, offices and serviced apartments. PHOTO: CAPITALAND

(CAPITALAND)

CapitaLand Investment (CLI) will launch its second commercial China real estate investment trust (C-REIT) by the third quarter of 2026, despite facing substantial losses from divesting its assets there in the past year.

The real asset manager made the announcement at its financial results briefing on Feb 11. It said that one of the assets it has filed in its prospectus includes the Raffles City Shenzhen development, which comprises a shopping mall, offices and serviced apartments.

It cited the relaxation of regulations in China, which now allows commercial assets to be approved in a C-REIT class, as a primary motivating factor. There are also no longer reinvestment obligations for C-REIT sponsors in China.

CapitaLand Commercial C-REIT, CLI's first C-REIT, made its debut on the Shanghai Stock Exchange on Sept 29, 2025. It also marked the first retail C-REIT with an international sponsor.

CLI's announcement follows its full-year financial results, which saw its 2025 total net profit tumble more than 69 per cent from the previous year, owing to lower portfolio gains and higher revaluation losses on its China portfolio.

This was despite operating net profit rising 6 per cent to $539 million, on the back of higher contributions from the listed funds business, lower interest costs and reduced operating expenses.

CLI said it incurred losses from the divestment of its assets in China, worth about $1 billion.

About $700 million worth of assets were sold at a discount of between 10 per cent and 20 per cent, which offset its gains from divesting its Japan and India assets.