CapitaLand Investment Q1 revenue up 16% on growth in fund, lodging management units

CapitaLand Investment noted that fee-related earnings for its fund management business rose 28 per cent year on year to $132 million. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - CapitaLand Investment (CLI ) posted a 16 per cent growth year on year in revenue to $598 million for its first quarter ended March 31, amid healthy growth in fee-related earnings (FRE) from its fund and lodging management businesses.

In its business update for the quarter on Thursday (May 12), CLI noted that FRE for its fund management business rose 28 per cent year on year to $132 million.

The ratio of its fund management FRE to funds under management in the quarter was 51 basis points, compared with 50 basis points for financial year 2021.

Meanwhile, FRE for its lodging management business were up 31 per cent year on year at $55 million.

Its lodging business posted a 34 per cent rise in revenue per available unit for the quarter, as pent-up demand fuelled a strong pickup in March with more countries welcoming vaccinated travellers.

As for its capital management business, it recorded $1.6 billion in capital recycled for the year to date, which is more than half of its annual $3 billion capital recycling target.

CLI noted that divestment and investment values predominantly relate to its transaction of 79 Robinson Road, which it had divested to CapitaLand Integrated Commercial Trust and CapitaLand Open End Real Estate Fund for $1.3 billion.

CLI said its diversified portfolio had benefited from the significant reopening of the global economy and travel in the quarter as more countries treated the pandemic as endemic.

CLI's fee income-related business grew 17 per cent to $262 million, from $223 million a year ago, while its real estate investment business grew 28 per cent to $403 million, from $316 million a year earlier.

Shares of CLI closed up seven cents or 1.8 per cent at $3.88 on Wednesday.

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