CapitaLand Investment Q1 revenue up 16% to S$598m on growth in fund, lodging management units

CAPITALAND Investment : 9CI 0% (CLI) posted a 16 per cent growth on year in revenue to S$598 million for its first quarter ended Mar 31, 2022, amid a healthy growth in fee-related earnings (FRE) from its fund and lodging management businesses.

In its business update for the quarter on Thursday (May 12), CLI noted FRE for its fund management business rose 28 per cent on year to S$132 million.

The ratio of its fund management FRE to funds under management in the quarter was 51 basis points, compared with 50 basis points for FY2021.

Meanwhile, FRE for its lodging management business was up 31 per cent on year at S$55 million.

Its lodging business also posted a 34 per cent rise in revenue per available unit for the quarter, as pent-up demand fuelled a strong pick-up in March with more countries welcoming vaccinated travellers.

As for its capital management business, it recorded S$1.6 billion in capital recycled year-to-date, which is more than half of its annual S$3 billion capital recycling target.

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CLI noted that divestment and investment values predominantly relate to its transaction of 79 Robinson Road, which it had divested to CapitaLand Integrated Commercial Trust and CapitaLand Open End Real Estate Fund for S$1.3 billion.

CLI said its diversified portfolio had benefited from the significant reopening of the global economy and travel in the quarter as more countries treated the pandemic as endemic.

In its core markets, the company saw healthy occupancy across its Singapore properties and is optimistic of a continued recovery and upward rental trajectory as the Republic eased Covid-19 measures. Its India operations also saw a recovery in office leasing environment and a pickup in warehouse leasing activity.

Meanwhile, CLI expects ongoing Covid-1 9 restrictions in China to weigh on operational performance in the near term, although it remains positive on long-term growth as its domestic presence should give it a competitive advantage.

CLI’s fee income-related business grew 17 per cent to S$262 million, from S$223 million a year ago, while its real estate investment business grew 28 per cent to S$403 million, from S$316 million a year earlier.

Looking forward, CLI expects to remain resilient despite global uncertainties. The company said it will continue to emphasise on sustainability, and is undertaking a holistic review of its 2030 Sustainability Master Plan to align with industry targets. 

Shares of CLI closed up S$0.07 or 1.8 per cent at S$3.88 on Wednesday.