CapitaLand Investment - DBS Research 2023-11-10: Multiple Avenues To Remain Vested!

• CapitaLand Investment (SGX:9CI)’s performance year-to-date remains steady with total revenue coming in at S$2.0bn. Revenue from its fee income-related business rose by +9% y-o-y to ~S$800m, which partially offsets the dip in its real estate investment business (-8% to S$1.4bn).

Operational performance in line

• - Read this at SGinvestors.io -
• A large part of the revenue increase in fee income comes from lodging management fees on the back of a robust 25% rebound in RevPAR and key count while its overall (REIT management and private funds) fees remain resilient.

3 reasons why we like CapitaLand Investment

• CapitaLand Investment is a net investor in 2023 with its private funds and selected REITs actively growing their portfolio while further opportunities for growth remain, given that close to S$10bn in funds is yet to be deployed.
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• While its divestment target of S$3.0bn could be missed, we see investors looking past that, given a more subdued liquidity environment indicates sub-optimal potential for returns.

Key questions answered in management call

What is the possible valuations outlook come end-2023?

• Read more at SGinvestors.io.

Derek TAN DBS Group Research | Rachel TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-11-10 SGinvestors.io

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