The asset manager reported a net profit of S$145 million (US$114.6 million) for 2025, a sharp retreat from the previous year. This decline was primarily attributed to lower portfolio gains and revaluation hits across its Chinese holdings. Revenue also experienced a 24% contraction, falling to S$2.13 billion as the firm grappled with broader market volatility and a cooling property sector.

The stock’s intraday slide to S$2.89 marked its largest one-day percentage drop in over a year. However, Citi analyst Brandon Lee characterized the post-earnings dip as a potential entry point for investors, noting that the stock has still outperformed the benchmark Straits Times Index year-to-date. Citi maintained its "Buy" rating, citing the company's resilient underlying fund management business.

Strategic Expansion and M&A Outlook

Chief Executive Lee Chee Koon remains focused on a long-term roadmap to reach S$200 billion in funds under management by 2028. At a results briefing, Lee explained that the company expects its current growth engines—including REITs and private-fund platforms—to contribute up to S$160 billion toward that goal. The remaining growth is expected to come from opportunistic acquisitions and new fund launches.

Regarding reports of a potential merger with Temasek-owned Mapletree Investments, Lee confirmed that CapitaLand Investment continues to evaluate all deals that could bolster its fee-based revenue. While the company pursues organic growth, it remains positioned to consolidate assets that provide immediate scale in key global markets.