CapitaLand Investment announced a 6% y-o-y decline in patmi to $331 million in 1HFY2024 for the six months to June 30. Operating patmi, which excludes gains and losses from divestments, revaluations and impairments, fell by 14% y-o-y to $296 million. CLI's strong fee-related business (FRB) was offset by weaker real estate investment business (REIB), which was impacted by higher interest expenses and unfavourable foreign exchange rates.
Revenue rose 1% y-o-y to $1,365 million and FRB revenue rose by 8% y-o-y to $561 million from improved asset performance and contribution from new management contracts in the lodging and commercial management businesses. The fund management business also contributed to revenue growth due to higher event-driven fees. The lower REIB revenue of $911 million was mainly due to the absence of contributions from properties divested in China, Australia, France, India and Singapore, as well as lower corporate leasing demand in the US.
FRB’s contribution to operating patmi grew to 63%, up from 49% in the same period last year. The group also made significant progress in its asset-light transition and diversification strategy, unlocking capital recycling of S$1.7 billion 1 to be redeployed for growth.
During the first half, CLI monetised $1.7 billion. Lodging management’s RevPAU increased by 6% and new growth engines were added, including a multi-year partnership between The Ascott Limited and Chelsea Football Club. Commercial management’s fee-income related revenue grew by 22%, driven by enhanced asset performance and a restructuring of management fees.
No dividend was declared as the company only pays a final dividend.
