CapitaLand Investment posts 2021 net profit of $1.35b

It reversed the net loss of $559m in 2020.

CapitaLand Investment's (CLI) report for the financial year (FY) 2021 showed a profit after taxation and minority interests (PATMI) of $1.35b for 2021, reversing the net loss of $559m in 2020.

Operating PATMI for FY 2021 increased by 12.2% to $497m year-on-year.

This was mainly driven by higher fee income from its fund management, lodging management businesses, and improved property performance from CLI's investment properties portfolio.

Cash PATMI doubled to $1.11b compared to FY 2020 on the back of improved operating performance and record asset recycling in 2021, which yielded a portfolio gain of $616m.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY 2021 was $2.47b in a significant positive turnaround compared to a loss of $33m in FY 2020. In addition to the improvement in revenue, investment properties held under its REIB-recognised revaluation gains, as well as higher portfolio gains from an active year of record asset recycling, enabled the group to realise a net effective divestment value of $3b. Singapore and China remained the key contributors to EBITDA, accounting for 33% and 28% of total EBITDA, respectively. 

Chairman Miguel Ko said, "This underscores market recognition of CLI's resilient and diverse global portfolio, operating expertise and disciplined capital recycling. CLI is well-positioned to support the growth of its investment vehicles, given its strong balance sheet and its ability to tap on CapitaLand Development as another pipeline source of assets."

"As part of our growth strategy, we will focus on expanding and diversifying our investor base and network of international partners as we scale up our private equity business, tap new fundraising channels and launch new funds, even as we remain disciplined in our portfolio reconstitution and capital recycling strategies," added CEO Lee Chee Koon.

In light of the evolving Russia-Ukraine conflict, CLI said it will closely monitor developments in the global economy, cautiously optimistic that its experience and track record in Asia will be able to deploy capital into attractive opportunities in core and focus markets, particularly in China.