CapitaLand Investment Ltd posted a 14% rise in first-half profit to S$327 million, while City Developments Ltd (CDL) saw net income more than triple to S$302 million, as stronger fee-related businesses and new property launches lifted earnings at two of Singapore’s biggest real estate groups.
According to Bloomberg, CapitaLand’s profit for the six months ended June 30 rose from a year earlier, supported by higher contributions from its private funds and real estate investment trusts.
CDL, meanwhile, recorded a sharp increase in earnings on the back of its property development business, which benefited from continued strength in Singapore’s private residential market.
The stronger results offered investors some encouragement after both companies faced a series of operational and strategic challenges.
CDL shares jumped as much as 11% on Aug 13, marking their biggest intraday gain since April 2020, while CapitaLand Investment rose as much as 2.6%.
CapitaLand, one of Asia’s largest property asset managers, oversees about S$128 billion in assets through its funds and investment platforms.
The group has been navigating a difficult fundraising environment as well as prolonged weakness in China’s property sector, one of its major markets. It has increasingly sought to diversify its portfolio by expanding into markets including India.
Chief Executive Officer Lee Chee Koon said the company would focus its capital and resources on its “core growth platforms”.
CapitaLand has identified between S$7 billion and S$9 billion of non-core investments for capital recycling and value realisation, including legacy funds, balance-sheet investments and non-strategic holdings in REITs and private funds.
The group has also faced recent strategic setbacks, including stalled merger discussions with fellow Temasek-backed property manager Mapletree Investments and the disbanding of its special opportunities team earlier this year.
CDL Chief Executive Officer Sherman Kwek, meanwhile, is working to rebuild investor confidence following a highly publicised dispute with his father and chairman Kwek Leng Beng in early 2025.
The two later resolved their differences, with the younger Kwek subsequently making debt reduction a key priority.
He cautioned that the operating environment remained “increasingly volatile”, pointing to geopolitical developments and changing capital market conditions.
CDL’s strategic review, which is expected to set out its capital allocation framework, remains on track to be announced by the end of September.
The review had previously been expected around the middle of the year.
CDL’s net debt-to-equity ratio increased to 75% from 71% last year, largely due to capital deployed for government land acquisitions earmarked for future development.
Despite the stronger first-half earnings, both companies have lagged Singapore’s broader equity market this year.
