- The macro environment is challenging but the discounted valuation, relative underperformance, and potential rate cuts keep our BUY rating on CapitaLand Investment.
- CapitaLand Investment's 1H24 PATMI was S$331m, -6% y-o-y and vs a loss for 2H23. Operating PATMI was S$296m, +32% h-o-h/-14% y-o-y.
Fee business up, capital recycling slow but steady
- - Read this at SGinvestors.io -
- CapitaLand Investment made ~S$1.7b of gross investments and divestments each. RevPAU of the lodging business rose by a mid-single digit.
- Gearing and debt cost inched up. CapitaLand Investment is focusing on M&As to grow the fund business and pursuing product and geographic diversification.
Fee business keeps delivering
- - Read this at SGinvestors.io -
- Notwithstanding a tough market, fund under management (FUM) and fee-related margin held steady at S$100b and 46bps respectively.
- About S$1.7b of capital was unlocked with almost half through sale to third parties. An equal amount was invested through 5 new private funds, including in an RMB fund. Lodging RevPAU grew 6% y-o-y with broad-based growth, barring Europe.
Pursuing diversification and asset-light growth
- Read more at SGinvestors.io.