CapitaLand Investment - OCBC Investment 2024-03-01: Fund Times Ahead

• CapitaLand Investment (SGX:9CI)’s FY23 revenue declined slightly by 3% y-o-y to S$2,784m, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 44% y-o-y to S$1,104m, due largely to losses from the revaluation of investment properties. As such group PATMI dipped 79% to S$181m.

FY23 operating PATMI fell 7% y-o-y to S$568m and missed our expectations

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• See CapitaLand Investment's dividends. Management declared a final cash dividend per share (DPS) of 12 Singapore cents, which was similar to FY22 but FY22 also included a special dividend-in-specie of CapitaLand Ascott Trust (SGX:HMN) units.

Fee income-related business (FRB) would be key focus

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• FRB would be management’s key focus given that fees earned tend to be recurring in nature and additional fees can also be generated via acquisitions and divestments from its listed vehicles as well as performance fee/carry from private funds. As such, CapitaLand Investment will aim to seed new funds and will usually commit its own capital to show alignment of interest with the capital partners.

Targeting new fund launches & inorganic growth opportunities

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-03-01 SGinvestors.io

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