+ Lodging segment star performer. 1H23 lodging management fee-related income grew 35% YoY to S$159mn due to higher room rates as well as improved occupancy across the portfolio. Portfolio RevPAU grew 32% YoY to S$87 and was 106% of 1H19 pre-COVID levels. CLI has a target to reach S$500mn in lodging management fees within five years.
+ Recurring fund management fees grew 10% YoY to S$183mn in 1H23. This alleviates the impact of lower event-driven fees (-65% YoY) in a market that is less conducive for deal-making. CLI has S$1.3bn in acquisitions from listed and private funds yet to be reported in Funds Under Management (FUM), as well as S$8.5bn in committed but undeployed capital in private funds that could lift fee income if deployed; it has a current FUM of S$89bn.
+ Managed to raise funds in a market battered by high interest rates. CLI raised S$3.2bn of committed equity for its private funds YTD (S$2.5bn for whole of FY22) – it established a new fund, CapitaLand India Growth Fund 2, mandated to invest in Grade A business parks in India.
It also raised S$986mn of new equity in its CapitaLand China Opportunistic Partners Programme and S$150mn in its CapitaLand Open End Real Estate Fund.
– REIB revenue declined 3.6% YoY to S$932mn, due to lower contribution from China properties and absence of income contribution from properties divested in 2022. It is unlikely that CLI will be able to hit its S$3bn divestment target for FY23 with only S$839mn of divestments YTD in this challenging environment.