CapitaLand Investment (SGX:9CI) saw its stock price plummet by 10.57% in intraday trading, following the release of its Full Year 2024 financial results that fell short of analyst expectations. The significant drop highlights investors' disappointment with the company's performance and outlook.
The real estate investment firm reported revenue of S$2.82 billion for the full year, up 1.1% from 2023 but missing analyst estimates by 2.6%. More concerning for investors was the earnings per share (EPS) figure, which came in 33% below expectations at S$0.095, despite showing growth from S$0.035 in the previous year. The company's net income increased by 165% to S$479.0 million, with an improved profit margin of 17%, up from 6.5% in 2023.
Adding to the negative sentiment, CapitaLand Investment's forward-looking statements indicated a potential decline in revenue, forecasting a 1.8% per annum decrease on average over the next three years. This outlook contrasts with the expected flat revenues for the broader Singaporean Real Estate industry, suggesting the company may face specific challenges in maintaining its market position. The sharp stock price decline reflects investors' concerns about the company's growth prospects and its ability to meet future performance expectations in a competitive real estate market.
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