Two of Singapore’s largest property companies reported a mixed set of results on Wednesday, as high interest rates and a global real estate slowdown weighed on performance in the first half.

One of the world’s largest real estate investment managers, CapitaLand Investment Ltd, saw a 6% drop in net income to S$331 million (US$251 million) from a year earlier, despite returning to the black after a S$170 million loss in the second half of last year. Revenue edged up slightly to S$1.37 billion.

It attributed the profit drop in a statement to a weaker performance of its real estate investment business, which was hit by higher interest expenses and unfavourable foreign exchange rates.

“Capital recycling remains a key priority in 2024 as we continue to reconstitute our portfolio,” chief executive officer Lee Chee Koon said in a statement, adding that the firm will sustain the ongoing momentum of divesting assets in China and the US.

City Developments Ltd saw net income increase by 32% to S$87.8 million in the six months ended June 30, compared to S$66.5 million recorded a year before, which it attributed to divestment gains. But revenue plunged by 42% to S$1.56 billion.

“The real estate sector faced considerable headwinds from macroeconomic conditions and higher financing costs, impacting the group’s financial performance,” said City Developments CEO Sherman Kwek in a statement.

  - Bloomberg