By Yongchang Chin
CapitaLand Investment’s first-quarter revenue rose 16% as the effects of countries’ postpandemic reopenings kicked in, boosting its lodging, property-investment and fund-management businesses.
Revenue came in at 598 million Singapore dollars (US$430.2 million) and the company had S$86 billion in funds under management as of the end of the quarter, unchanged from end-December.
Its lodging business was a bright spot, with revenue per available unit at S$71 versus S$53 a year earlier, and occupancy up to 57% from 48%.
“Most of our markets have begun to normalize international travel lanes, and operating conditions have improved as concerns over the Covid-19 virus recede,” the company said. “China is an exception, where a resurgence of Covid-19 has led to the lockdown of several key cities. We expect this to delay China’s economic recovery this year.”
CapitaLand Investment said it signed 3,700 new units in the first quarter, and opened more than 2,200. Its total portfolio of units rose to 135,000, or 84% of its 2023 target, the Singapore-listed company said.
Other headwinds such as geopolitical instability from the Russia-Ukraine war and supply-chain disruptions may persist, but CapitaLand Investment said it expects to “remain resilient,” thanks to its “healthy cash balance, available undrawn facilities and comfortable net debt-to- equity.”
Net debt to equity ratio stood at 0.48 times, while its net debt to total assets, a metric which excludes cash, was 0.26 times. The company has 59% of its debt pegged at fixed rates.
CapitaLand Investment also said that its 2022 capital recycling is on track, having met S$1.6 billion of its S$3 billion annual investment target as of May 11.
The group has about S$10 billion of assets in its pipeline on its balance sheet which can be converted to funds under management, it added.
Write to Yongchang Chin at [email protected]
Credit: www.marketwatch.com /