CapitaLand Investment (CLI) 9CI has reported earnings of $861 million for FY2022, down 36.2% versus the preceding year ended Dec 31 2021’s $1.35 million, because of lower divestment gains and also lower fair value gains from revaluation of its investment properties.
Revenue for FY2022 was up 25% over FY2021 to $2.88 billion, boosted by higher contributions from FRB, or fee income-related business, and real estate investment business, or REIB.
For 2HFY2022, earnings was down 33.8% y-o-y to $428 million, revenue was up 22.3% to $1.5 billion.
Despite challenges in the macroeconomic environment, CLI made gross divestments of $3.1 billion in FY2022, in line with its annual target of $3 billion, but below the exceptional year of FY 2021 when $13.6 billion was divested.
CLI plans to pay a dividend of 12 cents per share and a special dividend-in-specie of 0.057 CapitaLand Ascott Trust (CLAS) units per share valued at 5.9 Singapore cents per share for FY 2022, bringing the total dividend to 17.9 Singapore cents.
As at end-2022, CLI’s funds under management, or funds under management (FUM), stood at $88 billion, driven by the acquisition-led growth of CLI’s listed funds and the launch of eight new private funds during the year, including the newly launched CapitaLand China Data Centre Partners and CapitaLand China Opportunistic Partners Programme, bringing CLI’s embedded FUM to $96 billion, within striking distance of its $100 billion target by 2024.
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The establishment of the CapitaLand China Opportunistic Partners Programme was announced on Feb 23. The programme has a total of $1.1 billion equity committed to invest in special situation opportunities in China. CLI has secured $892 million from top tier global institutional investors, which hold an 80% stake in the programme. CLI holds the remaining 20% stake, in line with its asset-light strategy to grow its FUM while keeping strong alignment with its investors and partners. The CCOP programme comprises a $291 million single-asset fund and a $824 million programmatic joint venture (JV).
CLI has enjoyed a recovery in its lodging business too. As at end 2022, lodging units under management was 159,000, and are on target to reach 160,000 lodging units this year. Revenue per available unit was up 40% to $110, close to the pre-pandemic level in 2019.
“CLI’s globally diversified and balanced real estate portfolio has contributed to its steady performance amidst significant uncertainties in FY 2022,” says chairman Miguel Ko.
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“Despite market volatility, CLI’s share price has remained resilient, demonstrating shareholders’ confidence in CLI’s long-term vision to be a top global REIM and the management team’s ability to execute its growth plans.
According to Ko, CLAS has a healthy portfolio of lodging assets, and the proposed dividend-in-specie will enable shareholders to participate in and benefit from the recovery of
the lodging and hospitality industry as international travel grows.
“We remain confident of the renewed momentum and future growth of CLI’s businesses as prospects for the global economy improve,” he adds.
Group CEO Lee Chee Koon says the FY2022 results were hurt by rising interest rates and China’s zero-Covid approach, which led to lower capital recycling activities and higher rental rebates to support tenants in China.
“We forged ahead with our longer-term goal by enhancing our asset and fund management capabilities, launching RMB-denominated funds and setting up new logistics and self-storage fund platforms in Southeast Asia.
“With the return of our ability to recycle capital in China as the country overcomes the worst of its Covid-19 situation, our underlying business is showing encouraging signs of recovery and we stand ready to act on the right opportunities as we pursue long-term growth sustainably,” says Lee.
CLI shares closed Feb 22 at $3.85 up 0.79%.
