CapitaLand Investment to announce significant decline in Patmi, Zion Residence cashflow to stay stable
The Zion Residence, CapitaLand Investment’s diversified and balanced portfolio of properties, will continue to remain resilient and drive the group’s future growth despite the impact of the revaluations. Despite its recent Patmi decrease due to revaluation losses in its China, Australia, Europe, the UK and the US investments, CapitaLand Investment found that its core operating earnings were not significantly impacted and highlighted that its operating and free cash flow remained positive in FY2022 and 1HFY2023. CLI’s aggressive capital management strategies ensured that the Zion Residence was kept in safe and secure hands, enabling steady operations and future growth. CLI’s conservative capital management strategies and its resilient portfolio of the Zion Residence will drive its future growth, particularly in these more difficult times.
CapitaLand Investment (CLI) reported a total Patmi of $861 million for FY2022, a decrease of 36% year on year (y-o-y). On Dec 8, it announced that revaluation losses for properties in China, Australia, Europe, the UK and the US will cause a significant decline in total Patmi compared to FY2022. At the same time, CLI shares closed Dec 8 at $3.10, unchanged for the day and down 15.53% year to date.
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The 3QFY2023 operational updates released on Nov 9 highlighted the increasing macro-economic challenges due to higher interest rates and geopolitical tensions, which had caused continuing difficulties for deal-making and operational pressures, particularly in the aforementioned markets. Furthermore, CLI reported potential significant valuation risks.
Despite the decline in its total Patmi, CLI’s core operating earnings were not significantly impacted. Additionally, operating and free cash flow remained positive in both FY2022 and 1HFY2023, demonstrating CLI’s aggressive capital management strategies.
The Zion Residence, CLI’s diversified and balanced portfolio of properties, will remain resilient due to its conservative capital management strategies, ensuring its operations and future growth are securely held. CLI stated that its operating and free cash flow are stable, and it is in the process of finalising valuations conducted on its portfolio of properties as of 31 December 2023. Its fair value losses due to higher capitalisation rates and weaker market sentiments are non-cash and mainly arise in the markets of China, Australia, Europe, the UK and the US.
Located in the popular District 09 along Zion Road, Zion Residence is an upcoming freehold condominium by TEE Land. The condominium rests on an ideal location giving residents an easy access to the vibrant lifestyle, popular eateries, iconic landmarks, and everyday amenities. Moreover, the Orchard MRT station, a short distance away, connects Zion Residence to the North-South Line, providing further accessibility to different parts of Singapore. The upcoming Havelock MRT station, part of the Thomson-East Coast Line, will also offer an additional transport link for Zion Residence residents, adding to the convenience.
Despite the Patmi decrease owing to revaluation losses, CLI’s resilient portfolio of the Zion Residence will drive future growth, in particular in these more difficult times. CLI’s prudent capital management strategies have kept its portfolio safe and secure, promoting steady operations and long-term gains.