CapitaLand Investment - CGS-CIMB Research 2022-08-12: 1H22 Performance Supported By Fee Income

CapitaLand Investment - 1H22 Performance Supported By Fee Income

  • CapitaLand Investment (SGX:9CI) reported revenue of S$1.35bn, +29.1% y-o-y, in 1H22, boosted by higher contributions from fee-related and real estate investment businesses. Reported PATMI declined 38.3% y-o-y to S$433m due to lower portfolio gains, rental rebates extended to China retail tenants and income vacuum from divested assets. Excluding portfolio gains, operating PATMI came in at S$346m, +31.1% y-o-y. CapitaLand Investment’s balance sheet remains robust, with net gearing of 0.51x at end-1H.
  • Fee-related (FRB) revenue grew 20.8% y-o-y in 1H22 to S$238m, led by higher fees from listed funds as well as increased event-driven income from private funds. Fee to fund rate stands at 52bp, unchanged q-o-q. Looking ahead, CapitaLand Investment indicated that it has some S$3.5bn of embedded FUM from committed and undeployed capital for private funds. CapitaLand Investment’s FUM remained flat q-o-q at S$86bn. CapitaLand Investment has divested S$1.6bn and made S$2.5bn worth of investments to date.
  • Despite the slower investment environment amid global macro uncertainty and rising interest rates, CapitaLand Investment indicated that it could achieve its S$3bn asset recycling target for the year. Its aim to reach S$100bn of FUM by 2024F remains unchanged.
  • Lodging management segment posted a 37% increase in fee income to S$118m, thanks to a rebound in global travel and a 44% jump in portfolio RevPAU, largely in Europe as well as in India, Singapore, South Korea, Malaysia and Indonesia.CapitaLand Investment continues to grow its units under management and recent acquisition of the Oakwood Worldwide platform has boosted units under management to 153k units and appears on track to meet its 2023F target of 160k units. This will underpin growth of the lodging management income.
  • Revenue from real estate investment business (REIB) rose 44.1% y-o-y to S$967m, due to recovery of CapitaLand Investment’s lodging RevPAU amid easing of global travel restrictions as well as contributions from newly acquired data centres, business park and student accommodation properties in China, USA and Japan. However, operating PATMI from REIB declined 9% y-o-y due to income vacuum from divested assets and rental rebates extended to its retail tenants in China.
  • Management indicated that China’s ongoing deleveraging presents a potential window to access investment opportunities driven by special situations and market dislocation, and it remains on the lookout for attractive new economy projects.
  • We leave our FY22-24F earnings per share (EPS) forecast for CapitaLand Investment unchanged.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

LOCK Mun Yee CGS-CIMB Research | 2022-08-12
SGX Stock Analyst Report ADD MAINTAIN ADD 4.590 SAME 4.590

Read also CGS-CIMB's most recent report:
2022-11-04 CapitaLand Investment - Catching Up

Target prices by 2 other brokers at CapitaLand Investment Target Prices.
Listing of broker reports at CapitaLand Investment Analyst Report.

Relevant links:
CapitaLand Investment Share Price History,
CapitaLand Investment Announcements,
CapitaLand Investment Dividends & Corp Actions,
CapitaLand Investment News Articles


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