In April, CapitaLand Group announced its FY2023 results ended Dec 31, 2023, which showed that revenue, gross profit and profit before tax fell 6.9%, 11.4% and 76.8% y-o-y to $4.8 billion, $1.6 billion and $479 million, respectively. Meanwhile, patmi swung into a $92 million loss in FY2023 compared to a profit of $862 million in FY2022.
On Sept 12, OCBC Credit Research downgraded the issuer profile of unlisted CapitaLand Group to “neutral (5)”, which reflects a cautious but not overly pessimistic view of an entity’s ability to meet its financial obligations. The reason, according to the report dated Sept 12, is due to a weaker standalone credit profile — excluding CapitaLand Investment (CLI) — exacerbated by foreseeable losses of development properties while the quality of disclosure has declined.
CapitaLand Group owns a 52.8% stake in the listed CLI and 100% of the unlisted CapitaLand Development (CLD). CapitaLand Group is 100%-owned by CLA Real Estate, a Temasek Holdings entity. Separately, CLA Real Estate owns 30% of Cuscaden Peak, which, in turn, holds 61.44% or 1.74 billion units in Paragon REIT.
