CapitaLand Investment - Maybank Research 2024-02-29: Setting New Targets

• CapitaLand Investment (SGX:9CI) reported 2H23 PATMI of -S$170m vs S$428m a year ago. FY23 PATMI was S$181m, -79% y-o-y and below consensus/MIBG estimate by 79%/77%. This was largely due to weaker fund raising, lower contributions from China and valuation losses.

Weak finish but reasonable valuation

• - Read this at SGinvestors.io -
• CapitaLand Investment set a new fund AUM target of S$200b in the next 5 years. While challenges remain, current valuation, peaking rates, growing policy support in China and CapitaLand Investment’s diversification efforts make risk-reward favourable.

Weak China, revaluation losses offset stable operations

• - Read this at SGinvestors.io -
• Active portfolio recycling led to stable portfolio gains of S$213m. However, total PATMI was impacted by S$600m revaluation loss, mainly from CapitaLand Investment's properties in China and the US with offset from Singapore.
• Fee-related revenue was up 9% for FY23, led by growth in lodging (RevPAU +20%) and property management. This was partly offset by drop in private funds due to lack of performance fees.
• AUM was relatively unchanged at S$100b. Total committed equity for private funds grew 42% y-o-y to S$3.5b (19% CapitaLand Investment stake).

New FUM targets

• Read more at SGinvestors.io.

Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-29

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