CapitaLand Investment’s 9M revenue holds steady at S$2.1 billion

CAPITALAND Investment (CLI) reported S$2.1 billion in total revenue for the year to date (YTD) ended September, representing a slight improvement from S$2.09 billion in the prior year.

In a business update on Wednesday (Nov 6), the real asset manager said its total revenue continued to shift towards its fee income-related business, where contributions grew 6 per cent year on year to S$845 million versus S$799 million in the YTD ended September 2023.

Real estate investment business revenue (REIB), however, fell 2 per cent to S$1.42 billion from S$1.44 billion the year before.

The decline was largely due to divestments in India, Australia and France, which led to lower REIB revenue in their respective geographic segments.

CLI noted that stable recurring fees anchored its fee income growth in the YTD, as contributions from all fee income-related segments increased except for the listed funds management business. 

While listed funds management revenue fell 1 per cent year on year, the group said the segment continued to deliver stable operational performance. It noted that transactions from Jan 1 to Nov 5 this year were up 90 per cent compared to around the same period the previous year. 

In the lodging management business, YTD revenue per available unit (RevPAU) rose 4 per cent from the previous corresponding period, boosted by growth in the Japan and Korea markets amid higher occupancy and average daily rates (ADR).

For the third quarter alone, RevPAU was up 3 per cent, again driven mainly by Japan and Korea, where RevPaU grew 10 per cent on a 12 per cent rise in ADR.

CLI said it has met its annual S$3 billion capital recycling target for FY2024 with divestments in the YTD, with a near-halving of balance sheet assets from the start of 2024.

It estimates lower balance sheet assets of S$4.6 billion as at Nov 5, after factoring in divestments in Singapore, China and the US.

Shares of CLI closed S$0.04 or 1.4 per cent higher at S$2.91 on Tuesday.