On Dec 8, 2023, CLI announced that it expects fair value losses on its portfolio of investment properties, primarily attributable to the investment properties in China, Australia, Europe, the UK and the US. The fair value losses are non-cash in nature and arose mainly due to higher capitalisation rates and weaker market sentiments, said the group.
The year 2023 has been “unusually difficult”, said Capitaland Investment’s (CLI) group CEO Lee Chee Koon in a New Year message to staff. Despite working “extremely hard” and remaining clear and focused on the group’s goals, CLI will face asset valuation losses for the FY2023 ended Dec 31, 2023, across the various markets it is operating in.
“Even though these losses may be non-cash in nature, they will still impact CLI’s full year results. This is despite the fact that our underlying operating performance continues to be resilient and our business units continue to position strongly for the future. Our operating profit also remains strong, driven by our fee income, and we are moving in the right direction,” said Lee.
