CapitaLand Investment - OCBC Investment 2023-11-09: Near Term Challenges But Strength To Show

• CapitaLand Investment (SGX:9CI)’s 3Q23 business update highlighted a divergence in topline performance for its Fee Income-related Business (FRB) and Real Estate Investment Businesses (REIB) segments.

Resilient FRB revenue offset by dip in revenue from REIB segment

• - Read this at SGinvestors.io -
• This implies that FRB revenue grew 10% y-o-y in 3Q23, while that of REIB fell 16% y-o-y.

Fee Income-related Business driven by lodging and commercial management

• Growth for its FRB topline was driven largely by its lodging management and commercial management (previously known as property management) businesses.
  • - Read this at SGinvestors.io -
  • There was more emphasis placed on its commercial management business this quarter, which CapitaLand Investment sees as a resilient, capital efficient and recurrent fee platform which provides services to its REITs and fast-growing private funds business.

Real Estate Investment Businesses (REIB) affected by China and FX

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2023-11-09 SGinvestors.io

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