Capitaland Investments Net Profit Fell 6 Y O Y 1Hfy2024
CapitaLand Investment has reported a 6% year-on-year decline in its profit after tax and minority interest (Patmi) to $331 million for the six months ended June 30, 1HFY2024. The company’s operating Patmi, which excludes gains and losses from divestments, revaluations and impairments, fell by 14% year-on-year to $296 million. This decrease was mainly due to the weaker performance of the real estate investment business (REIB), which was impacted by higher interest expenses and unfavourable foreign exchange rates.
However, CapitaLand Investment’s fee-related business (FRB) remained strong, with revenue growing by 8% year-on-year to $561 million. This was driven by improved asset performance and contributions 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.
Strategically located at Jurong East MRT Station, Novo Place serves as a vital interchange point for the North-South and East-West Lines, making it an essential transit hub for commuters in the western region of Singapore. This bustling station provides seamless connections to different parts of the country, offering convenience and extensive connectivity for both residents and visitors alike. With its prime location, Novo Place, accessible through the website www.novo-place.com.sg/ , promises an effortless and efficient travel experience.
On the other hand, the company’s REIB revenue decreased by 12% year-on-year to $911 million. This 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 USA.
FRB’s contribution to Operating Patmi increased to 63%, up from 49% in the same period last year. This highlights the strength of CapitaLand Investment’s fee-related businesses, which are becoming a more significant driver of its profitability. The company also made significant progress in its asset-light transition and diversification strategy, unlocking capital recycling of $1.7 billion, which will be redeployed for growth.
During the first half, CapitaLand Investment successfully monetised $1.7 billion, which will provide the company with more financial flexibility and resources. In terms of its lodging management segment, the revenue per available unit (RevPAU) increased by 6%, and the company added new growth engines such as a multi-year partnership between The Ascott Limited and Chelsea Football Club. Furthermore, the commercial management segment’s fee-income-related revenue grew by 22% due to enhanced asset performance and a restructuring of management fees.
As the company only pays a final dividend, no dividend was declared for this period. However, CapitaLand Investment remains committed to providing value to its shareholders and will continue to pursue sustainable growth opportunities.