CapitaLand Investment Q1 fee income-related business revenue down 3% to S$255 million
Wu Xinyi
CAPITALAND Investment ’s (CLI) revenue from its fee income-related businesses in lodging, property and fund management fell 3 per cent year on year to S$255 million for Q1 2023, from S$262 million.
This was despite an improvement in its lodging management segment for Q1 2023, as its fee income-related business revenue for Q1 2022 included performance fees of S$31 million from a Singapore and Vietnam fund.
Excluding the S$31 million performance fees received in Q1 2022, revenue from its fee income-related businesses for Q1 2023 would have increased by 10 per cent, CLI noted in a business update on Thursday (May 11).
The ratio of its Q1 fund management fee-related earnings to funds under management was 45 basis points for the quarter, compared with 49 basis points for FY2022. The decrease in fund management fee-related earnings was attributed to the absence of event-driven performance fees from the exits of two private funds in Q1 2022.
Its lodging management business posted a 42 per cent rise in revenue per available unit (RevPAU) for the quarter on the sustained recovery of tourism. Excluding China, Q1 2023 RevPAU for all regions performed close to or above its pre-pandemic Q1 2019 level.
Meanwhile, revenue from its real estate investment business rose 11 per cent to S$447 million for Q1 2023, from S$403 million the previous year.
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In its core markets, Singapore saw positive rental reversions and improved year-on-year occupancy across all asset classes, fuelled by back-to-work trends, resilient demand for real estate and the resumption of global travel. India’s committed occupancy remained robust, while China was en route to gradual recovery with improved shopper traffic and tenant sales.
As China’s reopening supports growth across the country, CLI said it will continue to focus on launching new renminbi and US dollar funds.
Lodging management is expected to continue growing, driven by the continued recovery of the global travel and hospitality industry.
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The counter was trading down 0.5 per cent or S$0.02 at S$3.76 as at 10.10 am on Thursday.
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