Quick Read
- CapitaLand Investment shares fell up to 8.5% on February 11, 2026, after releasing FY 2025 results.
- Total net profit for FY 2025 plunged 70% to S$145 million, heavily impacted by China portfolio revaluation losses.
- Operating PATMI, excluding revaluations, rose 6% to S$539 million, driven by higher listed funds contributions.
- Funds Under Management (FUM) grew 7% to S$125 billion by end-2025, supported by strong fundraising.
- CLI proposed a core dividend of 12.0 Singapore cents per share for FY 2025.
SINGAPORE (Azat TV) – CapitaLand Investment (CLI) shares experienced a significant drop on Wednesday, February 11, 2026, plunging as much as 8.5% on the Singapore Exchange, following the release of its full-year 2025 financial results. The sharp market reaction was primarily driven by a substantial 70% decrease in the company’s total net profit, which fell to S$145 million from S$479 million in FY 2024, largely attributed to widening revaluation losses within its China portfolio amid continued market softness.
Market Reaction and Investor Sentiment on CapitaLand Investment
On Wednesday, February 11, 2026, CapitaLand Investment’s stock, trading under the ticker 9CI, saw its value drop by as much as S$0.27 to S$2.90 during morning trade, ultimately paring some losses to close down 5.7% at S$2.99 by midday, as reported by Business Times. This significant downturn came despite a slight uptick in shares on Tuesday, February 10, when they rose 0.3% following news from CLI’s lodging unit, Ascott, which reported record contract signings in 2025, signaling potential embedded income growth. Investors had been keenly awaiting the full-year results for insights into fee growth and fundraising momentum. However, the reported S$145 million net income for 2025 fell substantially short of the S$663 million average estimate by Bloomberg-compiled analysts, exacerbating the sell-off. The immediate market response underscored investor concerns regarding the impact of China’s economic challenges on the Singapore-based real asset manager’s bottom line.
Deciphering CapitaLand Investment’s FY 2025 Financials
CapitaLand Investment’s financial performance for the fiscal year 2025 presented a mixed picture, reflecting both operational resilience and significant external headwinds. The company reported an improved Operating PATMI (Profit After Tax and Minority Interests) of S$539 million, a 6% increase year-on-year from S$510 million in FY 2024. This operational growth was primarily fueled by higher contributions from its listed funds business, coupled with lower interest costs and reduced operating expenses. However, these gains were partially offset by growth-related expenses incurred to scale its private funds and lodging management businesses, alongside reduced contributions from asset divestments, as stated in CLI’s official release.
In contrast to the operating performance, the company’s total PATMI experienced a dramatic decline, plunging 70% to S$145 million in FY 2025 from S$479 million in the previous year. This substantial drop was largely attributed to lower portfolio gains and higher revaluation losses, particularly within CLI’s extensive China portfolio, signaling persistent market softness in the region. Total revenue remained stable at S$2,133 million for FY 2025, with increased fee-related revenue offsetting lower contributions from the real estate investment business post-divestments.
Despite the profit slump, CLI demonstrated growth in its Funds Under Management (FUM), which expanded by 7% to S$125 billion by the end of 2025, up from S$117 billion a year earlier. This growth was driven by robust capital raising momentum, with total equity raised almost doubling to S$6.5 billion, and strategic investments in entities like Wingate and SC Capital Partners, as detailed by Business Insider. The Board has proposed a core dividend of 12.0 Singapore cents per share for FY 2025, pending shareholder approval.
Strategic Outlook and Future Directions for CapitaLand Investment
Looking ahead to 2026, CapitaLand Investment articulated a clear strategy aimed at navigating the challenging macroeconomic environment and enhancing long-term value. Group CEO Lee Chee Koon outlined the vision for a “Future CLI” – a scaled, asset-light investment manager with a recurring fee-led model. The company plans to sharpen its portfolio through accelerated divestments and redeployment of capital, balancing the pace and pricing of these transactions to improve earnings quality and resilience. CLI expects transaction momentum to remain positive with greater clarity on interest rates and will continue to evaluate opportunities for organic growth, including potential new REIT listings.
A significant part of CLI’s strategy involves scaling third-party capital and strengthening its resilient fee base, building on strong investor take-up for its private funds. The Ascott Limited, CLI’s lodging management platform, delivered record contract signings in FY 2025, underpinning long-term growth through asset-light expansion into higher-fee segments. The company also highlighted its commitment to leveraging its S$6.4 billion debt headroom to pursue disciplined growth, evaluating strategic options, and collaborating with partners.
Furthermore, CLI is deepening its integration of technology and AI across its businesses, with AI-enabled initiatives delivering measurable outcomes in FY 2025, including a revenue uplift exceeding S$12 million and cost savings over S$5 million. The company is also investing in an AI-ready workforce and advancing towards more agentic AI capabilities to enhance workflow efficiency. On the sustainability front, CLI secured S$5.7 billion in sustainable finance in FY 2025, bringing its total to S$26 billion since 2018, and received the President’s Award for the Environment 2025. Amidst these strategic shifts, CLI is exploring options, including carving out its China assets, as part of a potential merger with Temasek’s other real estate asset manager, Mapletree Investments Pte, according to Bloomberg. This move underscores the company’s efforts to decrease its exposure to China and focus on fast-growing markets like India.
The market’s sharp reaction to CapitaLand Investment’s FY 2025 results highlights the ongoing investor sensitivity to the company’s exposure to the Chinese market, despite otherwise strong operational performance and strategic moves toward an an asset-light, fee-led model. While Citi analyst Brandon Lee views the post-earnings sell-off as an “enhanced buying opportunity” given the robust core fee-income engine and expected acceleration of asset recycling, the immediate share price plunge signals that the impact of revaluation losses in China currently overshadows the company’s operational strengths and future-oriented strategies in the eyes of many investors.