CapitaLand Investment - Maybank Research 2024-04-28: Slow Start; Battling Uncertain Macro

• CapitaLand Investment (SGX:9CI)’s 1Q24 saw a flat top-line with growth in fee-income business offset by decline in performance of on-balance sheet real estate investments.
• Weak capital markets weighed on fund deployment with FUM unchanged from last quarter at S$100b. However, private fund raising continues apace, CapitaLand Investment is tapping into domestic China liquidity and divestments have accelerated. Fee margins are stable while borrowing cost inched up.
• - Read this at SGinvestors.io -

Fee income business continues to grow

• CapitaLand Investment's 1Q24 revenue was unchanged y-o-y at S$650m.
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• On the other hand, fees from the fund management business were unchanged on stable AUM and fee margins.
• Decline in real estate business was mostly due to lower demand for lodging platform, weakness in China and FX losses. Improved pace of divestments led to net debt to equity trending down to 0.53x (Dec: 0.56x) while borrowing cost was up 10bps to 4.0%.

FUM unchanged, target remains to 2x in five years

• Read more at SGinvestors.io.

Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2024-04-28 SGinvestors.io

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