CapitaLand Investment - DBS Research 2024-02-29: Disproving Naysayers

• CapitaLand Investment (SGX:9CI) reported a 6.7% dip in operating PATMI to S$568m, slightly ahead of our projections of S$532m. Including portfolio gains of S$213m in FY23, cash PATMI (operating + portfolio) gains was similarly 6.0% lower to S$781m (- 8.0% y-o-y).
• - Read this at SGinvestors.io -

Remained profitable in FY23, dividend in line

• Overall, while 2H23 went into a net loss position, CapitaLand Investment remained profitable in FY23 with an overall PATMI of S$181m, -79% y-o-y.
• Financial metrics remained stable with steady net debt/equity of 0.56x (flat q-o-q) with ICR ratio of 3.8x (FY22: 4.7x). Given resilient cashflows, CapitaLand Investment announced a dividend of S$0.12 per share, in line with projections.

Steadily growing fund management platform.

• - Read this at SGinvestors.io -
• While CapitaLand Investment’s managed REITs returned steady growth in FUM (stable y-o-y) as acquisition activity remained subdued (net investment of ~S$700m (S$1.2bn investments against S$532m in divestments) due to high interest rate environment, the lower interest rates environment will make it more conducive for its listed REIT platforms to pursue growth initiatives.

Private funds business more productive

• Read more at SGinvestors.io.

Derek TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-02-29 SGinvestors.io

---