CapitaLand Investment revenue up in Q3 as travel demand recovers
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Ongoing redevelopments include turning 1 Science Park Drive into a life-science and innovation campus.
PHOTO: CAPITALAND
Ry-Anne Lim
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SINGAPORE - CapitaLand Investment (CLI) recorded a 43 per cent increase in revenue per available unit (RevPAU) for the third quarter ended Sept 30, to $110 from $77 a year ago.
In a business update on Friday, the property player said the increase was due to an upswing in travel demand and activity across all regions as border restrictions eased, with RevPAU recovering to 92 per cent of its pre-pandemic third-quarter 2019 levels.
Occupancies and average daily rates rose 12 per cent and 22 per cent, respectively.
CLI also booked a 16 per cent growth in fund management fee-related earnings to $339 million year to date, from $292 million in the corresponding period last year. This was driven in part by private funds – almost half of which are recurring – up 44 per cent to $118 million from $82 million in 2021.
On Thursday, for instance, CLI announced that it has established two onshore renminbi funds totalling four billion yuan (S$779 million) to invest in business park opportunities in China.
Additionally, CLI highlighted that 17 of its properties within listed funds have undergone asset enhancement initiatives or redevelopment amounting to around $1 billion since the start of the year.
Ongoing redevelopments include turning the former Liang Court site into an integrated development and 1 Science Park Drive into a life science and innovation campus.
In total, CLI’s fee-related earnings rose 16 per cent year to date to $760 million, from $656 million in the corresponding period last year – its property management earnings slipped slightly to $231 million from $236 million, while its lodging management earnings hiked to $190 million from $128 million.
Revenue from its real estate investment business also increased 48 per cent to $1.6 billion year to date, from $1.1 billion in the same period last year.
Acknowledging the global economic uncertainty and market volatility, CLI said it will “continue to ensure that the company has a strong balance sheet to capture opportunities that may arise in this rapidly changing market”.
It added that it will remain focused on creating value in its global real estate portfolio, which generates “healthy recurring rentals”, and continue building its fund and lodging management platforms, which produce “stable fee income”. THE BUSINESS TIMES
