CapitaLand Investment posts 9M21 funds under management grew 9 percent

Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.

CapitaLand Investment reported Wednesday its January-to-September funds under management (FUM) grew 9 percent on-year to S$84.3 billion.

Fund management fee related earnings (FRE) for the nine-month period increased 34 percent on-year to S$292 million at end-September, the company said in a filing to SGX.

“The operating performance of CLI’s real estate portfolio remained resilient in the third quarter of 2021, notwithstanding ongoing challenges stemming from Covid-19 resurgence in several of our operating markets,” CapitaLand Investment said in the statement. “We will proactively manage our operations in the face of current global supply chain imbalances, expected higher energy prices, and China’s real estate leverage concerns, which are expected to weigh on sentiment for the remainder of 2021.”

“We will continue our strategic pivot towards growing our investment management business and fee-related income, aimed at increasing predictable and recurring cashflow contributions going forward,” the company added.

Private funds’ FUM for the January-to-September period grew to S$28.7 billion, compared with S$25.8 billion for the full-year 2020, while listed funds’ FUM for the nine-month period came in at S$55.6 billion, up from S$51.8 billion for the full-year 2020, the filing said.

Revenue came in at S$1.6 billion for the January-to-September period, with 60 percent from real estate investment and 40 percent from FRB, which includes lodging management, property management and fund management. FRB revenue for the nine-month period was S$656 million, compared with around S$551 million in the year-ago period, the filing said.

In the lodging management division, CapitaLand Investment posted revenue per available room (RevPAR) for the third quarter increased 33 percent on-year to S$73, while occupancy rose 10 percentage points to around 60 percent.

For the January-to-September period, 5,300 new lodging units turned operational, doubling on-year, while 9,800 units were signed, up 8 percent on-year, the company said. CapitaLand Investment has set a target of 160,000 lodging units under management in 2023, with the end-September figure at 129,000, the filing said.

Read CapitaLand Investment’s filing to SGX for more segment details.