SINGAPORE - CapitaLand Investment (CLI) reported total revenue of $650 million for the first quarter ended March, down 0.2 per cent from $651 million in the same period in 2023.
On April 26, the real estate investment manager said this demonstrated “stable” performance on a year-on-year basis.
Fee income-related business revenue grew 7 per cent on the year to $274 million, versus $255 million in the year-ago quarter.
The growth was driven largely by increased revenue contributions from the commercial, lodging and listed funds management segments, which more than offset a decline in revenue from private funds management.
CLI’s real estate investment business revenue fell 4 per cent to $430 million from $447 million in the same period in 2023, which the group noted to be “largely stable”.
The revenue decline comes after factoring in asset divestments and lower revenue from its lodging platform Synergy, which led to lower revenue under CLI’s US and lodging segments.
CLI also highlighted higher real estate investment revenue contributions from Japan due to increased office occupancy and the addition of three rental housing properties under CapitaLand Ascott Trust.
Overall revenue per available unit (RevPAU) for the quarter grew 6 per cent to $86 on a 2 percentage point growth in occupancy, as well as 4 per cent higher average daily rates.
CLI noted that North Asia, excluding China, performed “strongly” with a 14 per cent growth in RevPAU.
RevPAU in the Middle East, Turkey, India and Singapore also exceeded pre-Covid-19 levels.
Europe experienced a 5 percentage point drop in occupancy as certain properties were under renovation. RevPAU for this market nonetheless remained “healthy” at 109 per cent of pre-Covid-19 levels, said the real estate investment manager.
CLI said that while it witnessed solid performance and market fundamentals in the growth hot spots of Singapore and India, other markets “showed varied prospects”.
China remained challenged, observed the group, adding that this market was “navigating macroeconomic weakness but seeing turnaround signs”.
As at April 25, the group achieved funds under management of $100 billion.
It aims to grow this figure to $200 billion by 2028 on the back of organic expansion and strategic inorganic initiatives, such as the selective pursuit of bolt-on or transformative mergers and acquisitions.
Shares of CLI closed up one cent, or 0.4 per cent, to $2.64 on April 26. THE BUSINESS TIMES
