CapitaLand Investment's net profit rose in the first half of the year, driven by stronger fee income from its fund management platforms.
Net profit for the six months ended June increased 14% from a year earlier to 327 million Singapore dollars, equivalent to US$255.3 million, the Singapore-based real asset manager said Thursday.
Fee revenue climbed 20% from a year earlier, supported by significant growth in the group's core listed and private funds management, it added.
However, overall revenue fell 2.1% on year to S$1.02 billion.
The company has completed about S$5.0 billion of gross divestments year-to-date, and intends to broaden its capital-recycling channels, such as through the listing of a second China real-estate investment trust. It listed its first public C-REIT in Shanghai last year.
The asset manager has identified a noncore portfolio of legacy funds, balance sheet investments and nonstrategic holdings in its managed REITs and private funds with an embedded value of S$7.0 billion to S$9.0 billion that it could recycle for capital.
A large portion of these holdings are in China, Group Chief Financial Officer Paul Tham said in a briefing. Other assets in the portfolio include those in Singapore and Europe.
The asset manager also plans to trim its stakes in its managed REITs--including CapitaLand Integrated Commercial Trust and CapitaLand Ascendas REIT--to around 15%, a level it deems comfortable.
While the company hasn't decided how it will deploy the proceeds from its planned recycling, Tham said at least half will be earmarked for reinvestment, citing opportunities in living and credit sectors. CapitaLand Investment could also use the funds to pay down debt or return to shareholders, he said.
Looking ahead, CapitaLand Investment expects continued growth in its fund management revenue in 2026, driven by the expansion of its listed and private funds management platforms and resilient recurring fee income.
Shares rose 1.1% to S$2.76 following the results, bringing the stock's year-to-date gain to 1.85%.