- While we like CapitaLand Investment (SGX:9CI)’s restructuring story and the execution so far, at current valuations, risk-reward is more balanced and hence the downgrade from BUY to HOLD.
- - Read this at SGinvestors.io -
- See CapitaLand Investment's announcement dated 23 Feb 2023 – CapitaLand Investment's FY22 PATMI of S$861m fell 36% y-o-y due to lower portfolio and revaluation gain. Operating PATMI rose 23% y-o-y due to improved fee and lodging segments.
- - Read this at SGinvestors.io -
Steady fee business
- CapitaLand Investment's FY22 fee based revenue grew 9% y-o-y to S$955m. 3% y-o-y fall in fees from listed funds and property management was offset by 26% y-o-y growth in fees from private funds. Decline in fees from the listed funds was mainly due to weaker operating performance of sponsored REITs.
- Private fund fee growth was supported by event-driven fees and modest FUM growth from S$86b to S$88b. Full-year fee rate dipped 1bp to 49bps. EBITDA margin for the fee business came in at 51% vs 54% a year ago.
- Undeployed capital and announced but yet to be completed acquisitions amount to S$8b which will shore up FUM to S$96b, just shy of S$100b target by 2024.
Lodging business revving up
- Read more at SGinvestors.io.
