CapitaLand Investment Q1 fee income-related business revenue down 3% to $255m
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Revenue from CLI's real estate investment business rose 11 per cent to $447 million for the first quarter of 2023, from $403 million the previous year.
PHOTO: ST FILE
Wu Xinyi
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SINGAPORE – CapitaLand Investment (CLI) said revenue from its fee income-related businesses in lodging, property and fund management fell 3 per cent year on year to $255 million in the first quarter in 2023, from $262 million.
This was despite an improvement in its lodging management segment for the first quarter of 2023, as its fee income-related business revenue in the first quarter of 2022 included performance fees of $31 million from a Singapore and Vietnam fund.
Excluding the performance fees of $31 million received in the first quarter of 2022, revenue from its fee income-related businesses for the first quarter of 2023 would have increased by 10 per cent, CLI noted in a business update on Thursday. The ratio of its first-quarter fund management fee-related earnings to funds under management was 45 basis points for the quarter, compared with 49 basis points for financial year 2022.
The decrease in fund management fee-related earnings was attributed to the absence of event-driven performance fees from the exits of two private funds in the first quarter of 2022.
Its lodging management business posted a 42 per cent rise in revenue per available unit (RevPAU) for the quarter on the sustained recovery of tourism. Excluding China, first-quarter 2023 RevPAU for all regions performed close to or above its pre-pandemic first-quarter 2019 level.
Meanwhile, revenue from its real estate investment business rose 11 per cent to $447 million for the first quarter of 2023, from $403 million the previous year.
In CLI’s core markets, Singapore saw positive rental reversions and improved year-on-year occupancy across all asset classes, fuelled by back-to-work trends, resilient demand for real estate and the resumption of global travel.
India’s committed occupancy remained robust, while China was on route for gradual recovery with improved shopper traffic and tenant sales.
As China’s reopening supports growth across the country, CLI said it would continue to focus on launching new renminbi and United States dollar funds.
Lodging management is expected to continue growing, driven by the continued recovery of the global travel and hospitality industry.
The counter closed trading down 1.1 per cent at $3.74 on Thursday. THE BUSINESS TIMES
