CapitaLand Investment - Phillip Securities 2023-11-14: Growing Recurring Income Streams

• CapitaLand Investment (SGX:9CI)'s 9M23 revenue of S$2.085bn (-3% y-o-y) was slightly below our estimates, forming 69% of our FY23e forecast.
• Fee-related revenue is on the rise, driven by a 31% increase in lodging management fees and a 9% growth in recurring fund management fees. However, this is offset by a significant decrease of 64% in event-driven fees.
• - Read this at SGinvestors.io -
• Maintain BUY on CapitaLand Investment with an unchanged SOTP-based target price of S$3.68. No change in our estimates.

The Positives

Lodging segment star performer.

• - Read this at SGinvestors.io -
• The improvement in operating performance coupled with 6,200 units (3.8% of signed units) turning operational resulted in a 31% y-o-y growth in lodging management fees. CapitaLand Investment has a target to reach S$500mil in lodging management fees within five years.

Recurring fund management fees grew 9% y-o-y to S$272mil in 9M23.

• Read more at SGinvestors.io.

Darren Chan Phillip Securities Research | https://www.stocksbnb.com/ 2023-11-14 SGinvestors.io

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