Hospitality segments boost property developments: UOBKayHian

City Developments Limited and Capitaland Investment reported strong results.

City Developments Limited and Capitaland Investment posted strong growth, driven by their lodging and hospitality sector, said UOBKayHian.

CLI’s ambitions in funds management are expected to pay off this year whilst CDL focuses on Singapore and the UK business.

CapitaLand Investment (CLI) reported a strong set of results with core PATMI up 23% yoy due to better performance in its Fee Income-related Businesses (FRB) and recovery in its lodging business.

But EBITDA was 10% lower year-on-year, the post-COVID-19 reflation story is expected to positively impact contributions from China this year.

CDL retains its goal for expansion in the living sector with its UK segment comprising 5% of its total assets or about $1b.

The broker retained its buy rating for both of the property developers.