2023 ‘unusually difficult year’, but CLI’s CEO is ‘confident’ about what is to come
On Dec 8, 2023, CLI declared that it assumes fair value losses on its portfolio of financial investment real estates, largely attributable to the investment properties in China, Australia, Europe, the UK and the United States. The reasonable value losses are non-cash in nature and arose primarily because of greater capitalisation rates and weak market leanings, claimed the team.
That said, Lee claims he stays confident regarding the future, as he sees “exciting possibilities for progress with all our business verticals”, particularly in Asia Pacific.
The year 2023 has been “unusually difficult”, stated Capitaland Investment’s (CLI) group chief executive officer Lee Chee Koon in a New Year news to employee. In spite of working “incredibly hard” and remaining clear and focused on the team’s goals, CLI is going to deal with asset value reductions for the FY2023 finished Dec 31, 2023, throughout the various markets it is managing in.
He adds that he is “of the view that many business might struggle to get through a persistently high rate of interest atmosphere and a politically split environment.”
Stocks in CLI closed at $3.16 on Dec 29, 2023.
Also to his message, Lee mentioned a number of geopolitical and economic headwinds including the ongoing Russia-Ukraine war and the unraveling dilemma in the Middle East that will influence on just how the group can move and grow.
Thus, CLI anticipates to report a significant decrease in its entire patmi for FY2023 on a y-o-y basis.
” Even though these losses may be non-cash in nature, they will certainly still register CLI’s full-year outputs. This is despite the fact that our underlying operating performance continues to be durable and our organization units remain to position strongly for the future. Our operating earnings even stays strong, generated by our fee earnings, and we are relocating the right course,” stated Lee.
” We must prepare to turn this into our advantage. Currently, we are observing some interesting possibilities emerge which would certainly not have been offered when times were excellent,” he went on. “The key is never to squander a crisis. We will certainly continue to guarantee we have the balance sheet and stand ready to create bold moves to carry a step improvement to our companies. We are going to pay attention to satisfying the requirements of our customers and in so doing, we are going to construct a base of recurring fee income and strong enterprise value in accordance with our vision to be the recommended global legitimate asset manager developing positive lasting influence.”