Capitaland Investments Net Profit Fell 6 Y O Y 1Hfy2024
CapitaLand Investment posted a 6% year-on-year decline in operating PATMI to $331 million in the first half of financial year 2024, covering the six months until June 30. Excluding gains and losses from divestments, revaluations, and impairments, operating PATMI fell by 14% year-on-year to $296 million. This decrease was primarily driven by the company’s weaker real estate investment business (REIB) due to higher interest expenses and unfavorable foreign exchange rates.
Although revenue rose by 1% year-on-year to $1.365 billion, the growth was mainly driven by the strong performance of the company’s fee-related business (FRB). FRB revenue grew by 8% year-on-year to $561 million, thanks to improved asset performance and 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. However, the company’s REIB revenue of $911 million was lower, mainly due to the absence of contributions from properties that were divested in China, Australia, France, India, and Singapore. Lower corporate leasing demand in the USA also affected REIB revenue.
FRB’s contribution to operating PATMI increased to 63%, up from 49% in the same period last year. CapitaLand Investment also made significant progress in its asset-light transition and diversification strategy, unlocking S$1.7 billion in capital recycling to be reinvested for growth.
During the first half, the company monetized $1.7 billion and saw a 6% increase in lodging management’s RevPAU. New growth engines were also added, including a multi-year partnership between The Ascott Limited and Chelsea Football Club. In addition, commercial management’s fee-related revenue grew by 22% due to enhanced asset performance and a restructuring of management fees.
CapitaLand Investment does not declare interim dividends, as it only pays a final dividend each year.
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