- CapitaLand Investment (SGX:9CI)'s 3Q23 business updates indicate steady growth of recurring fee revenue, expanding lodging business and accelerating capital raising for private funds.
- Capital deployment and recycling remain muted due to challenging markets, especially in China. Management continues to focus on diversifying its geographic and sector mix.
- - Read this at SGinvestors.io -
- We maintain our forecasts but lower our target price for CapitaLand Investment by factoring in a lower value for stakes in REITs.
Steady recurring fee revenue
- CapitaLand Investment's fee-related earnings (FRE) for 9M23 grew 5% y-o-y (adj. 9%) to S$799m. This was supported by 31% growth in lodging management fees and 6% higher commercial management fees.
- - Read this at SGinvestors.io -
- Meanwhile, fee rate fell from 53bps to 44bps due to absence of event-driven fees.
- Recurring fees from listed and private funds grew 9% and comprised 89% of fund-related fees. Commercial management fees grew 6% y-o-y due to improved operating performance of the properties and acquisitions of new assets.
Lodging business growing, albeit slowly
- Read more at SGinvestors.io.
