Shares of CapitaLand Investment advanced during Monday's afternoon session, climbing approximately 1.3% to S$3.16 and trading close to a 52-week high. The move followed a positive operational update from its lodging subsidiary, Ascott.
Record Signings Drive Momentum
Ascott reported signing a record 19,000 units across 102 properties globally in 2025, representing a significant 27% increase compared to the prior year. The company attributed this growth to stronger performance in higher-fee segments like resorts, alongside expansion through franchising and property conversions. Ascott entered over 10 new cities across the Asia-Pacific and Europe during the period.
The company's global portfolio now exceeds 1,000 properties in operation and under development, comprising more than 176,000 units. Ascott's CEO, Kevin Goh, stated that these new signings provide the embedded income to surpass the group's S$500 million fee income target.
Focus on Fee-Based, Asset-Light Model
The update is significant for investors monitoring CapitaLand Investment's ability to grow recurring income without increasing direct property risk. Ascott operates primarily on an asset-light, fee-earning model, managing or franchising properties rather than owning them, which aims to provide steadier income with less balance sheet exposure.
Approximately 30% of the new signings came from existing partners expanding their relationships with Ascott, highlighting strong client retention, according to the company's chief growth officer.
Earnings and Execution in Focus
While the signings data is a positive leading indicator, analysts note that realized earnings depend on the successful and timely conversion of this pipeline into open, revenue-generating properties. Market conditions, travel demand, and project execution can impact the final financial contribution.
All eyes are now on CapitaLand Investment's full-year financial results, scheduled for release on February 11. Investors will scrutinize the reported fee-income run-rate, management's guidance for new fund-raising activities, and clarity on how much of Ascott's robust pipeline will translate into revenue for the coming year.