2023 ‘unusually difficult year’, but CLI’s CEO is ‘confident’ about what is to come

The year 2023 has been “abnormally difficult”, claimed Capitaland Investment’s (CLI) group chief executive officer Lee Chee Koon in a New Year news to workers. Despite working “very quite hard” and continuing to be clear and focused on the team’s goals, CLI will face asset valuation losses for the FY2023 ended Dec 31, 2023, around the various markets it is managing in.

Shares in CLI closed at $3.16 on Dec 29, 2023.

” Despite the fact that these losses may be non-cash in nature, they will still impact CLI’s full-year outputs. This is although that our underlying operating productivity continues to be resistant and our business units remain to position highly for the future. Our operating revenue even continues to be strong, generated by our rate income, and we are relocating the appropriate path,” stated Lee.

That said, Lee states he continues to be optimistic about the future, as he sees “exciting possibilities for development in all our business verticals”, especially in Asia Pacific.

He adds that he is “of the sight that several firms might deal to navigate a persistently high rates of interest setting and a politically split world.”

Also to his message, Lee pointed out a number of geopolitical and economic headwinds including the continuous Russia-Ukraine war and the unfolding crisis in the Middle East that will definitely impact on just how the group can relocate and develop.

On Dec 8, 2023, CLI publicized that it assumes fair value losses on its portfolio of financial investment real properties, largely attributable to the financial investment real estates in China, Australia, Europe, the UK and the United States. The fair value losses are non-cash in nature and emerged mostly due to higher capitalisation rates and weaker market leanings, stated the team.

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” We must be ready to switch this into our benefit. Currently, we are observing some interesting chances arise which would not have actually been available when times were great,” he went on. “The trick is never to throw away a dilemma. We will certainly remain to make sure we have the balance sheet and stand prepared to make bold moves to bring a move change to our services. We are going to pay attention to meeting the requirements of our clients and in so doing, we will definitely develop a base of recurring fee income and strong business worth in line with our vision to be the favored international legitimate possession manager developing favorable lasting effect.”

Because of this, CLI anticipates to declare a considerable reduction in its total patmi for FY2023 on a y-o-y basis.

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