CapitaLand Investment First-Half Profit Falls 13.3% to $287m

Loss of contributions from divested assets, downturn in China among factors

- Benjamin Lim

CapitaLand Investment (CLI) recorded a 13.3 per cent drop in earnings year on year for the first half of 2025, after loss of contributions from divested assets, lower fund performance and transaction fees, and absence of a one-off tax write-back.

It also attributed part of its performance to the downturn in China, where it has 18 retail and commercial properties.

CLI shares closed 3.6 per cent down at $2.72 on Aug 14.

Net profit for the six months to June dropped to $287 million from $331 million in the year-ago period.

This came as revenue for the first half fell 24 per cent to $1.04 billion from $1.37 billion. The fall was partly due to the deconsolidation of CapitaLand Ascott Trust as a CLI subsidiary, as well as the loss of contributions from divested properties.

CLI said the fall in profit was mitigated by contributions from new investments, improved performance from lodging properties, and lower finance costs.

Overall revenue from fee income-related businesses was $564 million, up 1 per cent from $561 million in the year-ago period, driven by new acquisitions by real estate investment trusts (Reits), establishment of new funds, and management contracts.

CLI is facing significant headwinds in China, where it is embroiled in a longer-than-expected approval process to reposition and recycle its assets due to economic and political uncertainty.