- CapitaLand Investment (SGX:9CI)'s 1Q23 revenue of S$702mil (+5.6% y-o-y) was slightly below our estimates, forming 21% of our FY23e forecast. This was due to lower event-driven fees from fund management (-S$33m or -68.8% y-o-y) with the lull in property transaction activities. Recurring fee income from fund management grew 3.5% to S$87mil.
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- Maintain ACCUMULATE on CapitaLand Investment with an unchanged SOTP-based target price of S$4.12.
The Positives
Strong recovery in the lodging segment.
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- The real estate investment business also benefitted from the recovery in the lodging segment, with revenue growing 10.9% y-o-y to S$447mil.
- With the FY23 target of 160k lodging units in the portfolio hit in 1Q23 after signing more than 4k units in 1Q23, the new target is to double its fee revenue from lodging management to more than S$500mil in 5 years.
The Negatives
1Q23 revenue growth of 5.6% was below expectation
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