SINGAPORE – Real estate investment manager CapitaLand Investment (CLI) posted a 3 per cent drop in revenue to $2.1 billion for the nine months ended Sept 30, compared with $2.2 billion in the corresponding period the previous year.

The dip in revenue was due to an 8 per cent decline in revenue of its real estate business to $1.4 billion.

This was partially offset by a 9 per cent growth in its fee income-related business at $799 million, said the manager in a business update on Thursday.

Its fee-based business, comprising private funds, listed funds, lodging and commercial management, registered the strongest revenue growth in lodging management, with a 31 per cent year-on-year increase.

This was mainly led by stronger operating performance and higher contribution from serviced apartment provider Oakwood, which was acquired in July 2022.

The property giant also recorded growth in revenue per available unit (RevPAU) across various markets, driven by higher occupancy and room rates.

Overall RevPAU improved 25 per cent, while the occupancy rate increased 9 percentage points and average daily rates grew 8 per cent.

“North Asia continued as the region displaying the fastest growth in RevPAU, driven by Japan,” said the manager, noting that RevPAU for the region, excluding China, rose 110 per cent on the year.

The manager also highlighted a healthy debt headroom, with its net debt-to-equity ratio at 0.55 times and implied interest cost at 3.9 per cent.

CLI shares closed one cent, or 0.3 per cent, lower at $3.03 on Thursday. THE BUSINESS TIMES