Debt Servicing Ratio of Capitaland Investment - Dividend Machines by The Fifth Person

Q&A › Category: Dividend Stocks › Debt Servicing Ratio of Capitaland Investment

Ruth Ke asked 2 months ago

Hi Team, I noted that the Debt Servicing Ratio of Capitaland Investment has exceeded 30% since 2022. Is this a cause for concern? Thank you.

1 Answers

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Victor Chng Staff answered 2 months ago

Hi Ruth,

CapitaLand Investment’s financials are a bit tricky at the moment because the company is in a transition phase. It is moving from an asset-heavy model to a more asset-light one.

Its current debt levels are tied to the physical properties it owns, but these assets are expected to be divested over time.

Ruth Ke replied 2 months ago

Thank you Victor for the prompt reply 🙂