CapitaLand Investment Limited - Annual Report 2021

FY 2021 Performance Review FINANCIAL POSITION OF THE GROUP Total Assets As at 31 December 2021, the Group’s total assets stood at S$37.6 billion (FY 2020: S$38.2 billion), with investment properties as well as investments in associates and joint ventures accounting for 43% and 35% of the Group’s total assets respectively. The Group’s diversified portfolio across geographies and asset classes, coupled with its fee-based income provided the Group a stable recurring income. In terms of geography, Singapore and China continue to be the Group’s core markets and collectively accounted for approximately 64% of the Group’s total assets. Shareholders’ Equity As at 31 December 2021, the issued and paid-up ordinary share capital (excluding treasury shares) of the Company comprised 5.1 billion shares valued at S$10.8 billion. The Group’s total reserves increased from S$3.9 billion in FY 2020 to S$5.3 billion in 2021, with the increase mainly coming from the S$1.3 billion profits delivered in 2021. As at 31 December 2021, the Group’s total shareholders’ funds was S$20.1 billion (FY 2020: S$15.7 billion) and net assets value per share was S$3.12 (FY 2020: S$2.831). 1 Taking into account the capitalisation of loans and based on the number of issued shares as at 31 December 2020 of 5,203 million. Dividends The Board of Directors of the Company has proposed a total dividend of 15.0 cents comprising an ordinary dividend of 12.0 cents per share and a special dividend of 3.0 cents per share for the financial year ended 31 December 2021. This would amount to a payout of approximately S$771millionwhich represents a dividend payout ratio of 70% of FY 2021’s Cash PATMI2. On a per share basis, it translates into a gross yield of 4.4% based on the Company’s last transacted share price as of 31 December 2021. 2 Cash PATMI comprises operating PATMI, divestment gains and realised revaluation gains. TOTAL ASSETS BY GEOGRAPHY Singapore 30% Other Developed Countries (excludes Singapore and Hong Kong) 27% China (includes Hong Kong) 34% Other Emerging Countries (excludes China) 9% Revenue 15% EBITDA NM Operating Non-Operating (includes portfolio gains, revaluation and impairment) FY 2020 FY 2020 FY 2021 FY 2021 1,506 1,314 868 (1,093) 1,093 1,137 (225) 2,230 REIB REVENUE AND EBITDA (S$ million) The increase was partially offset by lower contributions from retail malls inMalaysia and the loss of contribution from assets divested in Japan, Korea, China and Singapore over the two years under review. REIB recorded an EBITDA of S$2,230 million in FY 2021, a significant improvement from a loss of S$225 million in FY 2020. The increase was mainly attributed to improved operating performance, the recognition of fair value gains from the revaluation of the Group’s investment properties as compared to a loss in 2020 as well as the absence of impairment for investments. Excluding revaluation and impairment, FY 2021 EBITDA improved by 76%, boosted by portfolio gains from record asset recycling in 2021. S$38B FINANCIAL PERFORMANCE FINANCIAL HIGHLIGHTS FY 2021 Performance Review 2020 2021 (A) INCOME STATEMENT (S$ million) Revenue 1,983 2,293 Earnings before interest, tax, depreciation and amortisation (EBITDA) (33) 2,469 Profit/(Loss) attributable to shareholders of the Company (559) 1,349 Comprising: Operating PATMI 443 497 Portfolio gains 97 616 Revaluation and impairments (1,099) 236 (B) BALANCE SHEET (S$ million) Investment properties 15,852 16,249 Associates and joint ventures 13,198 13,248 Cash and cash equivalents 1,736 3,877 Other assets 7,437 4,272 Less: Total borrowings and debt securities 8,466 13,548 Other liabilities 14,023 3,997 Net assets 15,734 20,101 Equity attributable to owners of the Company 11,875 16,044 Non-controlling interests and perpetual securities 3,859 4,057 Total equity 15,734 20,101 (C) KEY PERFORMANCE METRICS Earnings per share (cents) (19.9) 38.3 Return on equity 1 (%) (3.8) 8.7 Net tangible assets per share (S$) 2.64 2 2.93 Net asset value per share (S$) 2.83 2 3.12 FM FRE³ (S$ million) 306 409 Funds under management (FUM) 4 (S$ billion) 77.6 86.2 FM FRE/FUM 5 (bps) 40 50 (D) Dividend Ordinary dividend per share (cents) 9.0 6 12.0 Special dividend per share (cents) - 3.0 Total dividend per share (cents) 9.0 15.0 Notes 1 Return on equity was computed based on PATMI or Net Loss (after distribution to perpetual securities) over average equity attributable to owners of the Company. 2 Net tangible assets per share and net asset value per share took into account the capitalisation of loans and number of issued shares as at 31 December 2020 of 5,203 million. 3 FM FRE refers to fee revenue from listed and private funds (private funds and/or investment vehicles, including but not limited to programs, joint ventures and co-investments) managed by CLI Group. 4 FUM refers to the share of total assets held by listed and private funds managed by CLI Group. 5 FM FRE/FUM was computed using FM FRE over the average FUM for the year. 6 For the financial year ended 2020, the dividends were declared under CapitaLand Limited (now known as CapitaLand Group Pte. Ltd.). FINANCIAL PERFORMANCE Annual Report 2021 33 CapitaLand Investment Limited 32