CapitaLand Investment Limited reports S$346m PATMI in H1

Despite lower profits, CIL is on track to reach its target of S$100b funds managed by 2024.

CapitaLand Investment Limited has reported a profit after tax and minority interest (PATMI) of S$346m in H1 2022, 38.3% lower than the first six months of 2021, the company’s bourse filing showed. However, PATMI is 31% higher than in H2 2021.

Revenue for the first half of the year rose 29% to over S$1.35b, boosted by higher contributions from FRB and the real estate investment business (REIB), according to CapitaLand. Higher fee earnings from private funds and lodging management pushed up CIL’s FRB revenue to grow 9% year-on-year to S$476m. 

REIB revenue jumped 44% to S$967m thanks to improved occupancy and room rates for lodging properties, CapitaLand reported.

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Earnings before interest, taxes, depreciation and amortization for H1 was S$873m, 32% YoY lower due to lower portfolio gains from asset recycling, rental rebates to retail tenants in China, and absence of contributions from divested assets in Japan, Singapore, and China, CIL said. Improved performance from lodging businesses and retail malls in Singapore and Malaysia partially offset this.

Portfolio gains in the first half of 2022 were mostly from the divestment of JCube and CapitaSky, formerly 79 Robinson Road, in Singapore.

As of end-June, CLI’s funds under management is at S$86b. CLI said that it is on track to reach its target of S$100b by 2024.

CLI also reported that it is on-target to reach 160,000 lodging units by 2023, noting that its recent acquisition of Oakwood Worldwide added approximately 15,000 units to its portfolio. CLI now has 153,000 lodging units under management, rising from just 133,000 units on 31 December 2021, the bourse filing stated.