2023 ‘unusually difficult year’, but CLI’s CEO is ‘confident’ about what is to come
The year 2023 has actually been “unusually hard”, said Capitaland Investment’s (CLI) group chief executive officer Lee Chee Koon in a New Year message to employee. Despite doing the job “extremely quite hard” and remaining clear and directed on the group’s goals, CLI is going to face asset assessment losses for the FY2023 ended Dec 31, 2023, around the different markets it is managing in.
” Even though these declines might be non-cash in nature, they will certainly still affect CLI’s full-year outcomes. This is although that our underlying operating performance remains to be durable and our company units remain to position highly for the future. Our operating revenue also remains solid, generated by our fee earnings, and we are moving in the right direction,” stated Lee.
Thus, CLI expects to declare a considerable decrease in its entire patmi for FY2023 on a y-o-y basis.
” We must be ready to switch this into our benefit. Currently, we are seeing some exciting possibilities arise which would not have actually been offered when times were good,” he continued. “The key is never to lose a situation. We will certainly remain to guarantee we have the balance sheet and stand prepared to create bold relocate to deliver a move change to our organizations. We will concentrate on satisfying the needs of our consumers and in so doing, we are going to construct a base of recurring fee income and strong enterprise value in line with our vision to be the recommended worldwide real property manager developing favorable lasting effect.”
Also to his message, Lee cited several geopolitical and economic headwinds including the recurring Russia-Ukraine war and the unfolding situation in the Middle East that will effect on the way the group can move and grow.
On Dec 8, 2023, CLI announced that it anticipates reasonable worth losses on its portfolio of investment real properties, mainly attributable to the financial investment real estates in China, Australia, Europe, the UK and the US. The proper value losses are non-cash in nature and developed mostly because of greater capitalisation prices and weaker market affects, claimed the group.
That said, Lee states he continues to be hopeful concerning the future, as he sees “amazing chances for growth in each of our business verticals”, specifically in Asia Pacific.
Shares in CLI closed up at $3.16 on Dec 29, 2023.
He adds that he is “of the view that several companies can struggle to get through a persistently high rates of interest environment and a politically divided environment.”