- CapitaLand Investment (SGX:9CI)'s 1H24 profit after tax of S$331mil was only 40% of our full year estimates of S$736mil, mainly due to lower portfolio gains of S$35mil in 1H24 vs our assumptions of S$150mil for the year.
- - Read this at SGinvestors.io -
1H24 results slightly below expectations.
- Revenues were flattish, up 1% y-o-y to S$ 1,365mil, with a noticeable 8% y-o-y rise in revenues from Fee related Business (FRB) to S$ 561mil. This drove EBITDA up by a similar 8% y-o-y to S$819mil, fuelled by portfolio gains of S$69mil from divestment activities across its listed/private fund platforms and higher fair-value gains from its stakes in its listed REITs from recent issued units.
Notable switch to a fee-related earnings model.
- We note a gradual switch in contribution in operating PATMI towards the group’s FRB, which provides a recurring fee income outlook.
Capital Management.
- - Read this at SGinvestors.io -
- Given the expected dovish interest rate environment 2H24-2025 onwards, we believe that interest rates may have already peaked.
Outlook & Our Views
Seeking diversification through repositioning its capital, recycling assets.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Derek TAN DBS Group Research | Tabitha FOO DBS Research | https://www.dbs.com/insightsdirect/ 2024-08-15
Previous report by DBS:
2024-02-29 CapitaLand Investment - Disproving Naysayers.
Price targets by 3 other brokers at CapitaLand Investment Target Prices.
Listing of research reports at CapitaLand Investment Analyst Reports.
Relevant links:
CapitaLand Investment Share Price History,
CapitaLand Investment Announcements,
CapitaLand Investment Dividends & Corporate Actions,
CapitaLand Investment News Articles