[SINGAPORE] CapitaLand Investment’s (CLI) shares plunged more than 8 per cent on Friday (May 2) morning, after trading in the company went ex-dividend the same day.
Shares of CLI fell 8 per cent or S$0.22 to S$2.53 shortly after the opening bell. Around 8.1 million shares changed hands as at 10.20am.
Earlier this year, the company declared its ex-dividend date to be on Friday for its once-yearly dividend payout of S$0.12 per share, plus 0.031 unit of CapitaLand Integrated Commercial Trust for each CLI share valued at about S$0.067. The dividend record date will be May 5, with the payment date on May 13.
The real asset manager said in a business update on Wednesday that its revenue fell to S$496 million, down 24 per cent from S$650 million in the previous corresponding period.
The company attributed much of the revenue decline to the deconsolidation of CapitaLand Ascott Trust (Clas). In December 2024, CLI sold a 4.9 per cent stake in Clas for S$162 million to an unrelated party.
However, on a like-for-like basis, revenue remained “stable” since it would have been S$496 million in the first quarter of 2024, after accounting for Clas’ deconsolidation in both periods, the company said.
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CLI’s real estate investment business revenue fell by more than 40 per cent to S$242 million in Q1, from S$430 million. But this was for similar reasons – on a like-for-like basis, revenue would have decreased by 6 per cent, after adjusting for Clas’ deconsolidation, said CLI.
Phillip Securities Research maintained its “buy” rating on CLI, and kept its target price of S$3.65 unchanged. “We continue to favour CLI for its robust and growing recurring fee income stream and asset-light strategy, which enhances resilience amid macroeconomic uncertainty,” said Darren Chan, an analyst at the research house.
He noted CLI’s low debt-to-equity ratio of 0.39 times, which could enable the company to expand through future acquisitions. However, he also said that investment activity could be delayed to end-FY2025 due to geopolitical uncertainties.
CLI said its strategic priorities remain focused on thematics and markets-focused products, such as in logistics and self-storage, living and wellness, private credit and data centres.
Following the launch of its first commercial real estate investment trust in China earlier this year, CLI also reiterated its strong foundation and long-term view of its China-based business.
