CapitaLand Investment’s FY 2022 Operating PATMI rises 23% year-on-year to S$609 million
Proposes a total dividend of 17.9 Singapore cents1 comprising a core dividend of 12 Singapore cents per share and a special dividend-in-specie of 0.057 CLAS units per share valued at 5.9 Singapore cents1
Singapore, 23 February 2023 – CapitaLand Investment Limited (CLI) posted an Operating PATMI2 of S$609 million for FY 2022, 23% higher than the S$497 million a year ago. This was mainly attributable to better performance in its Fee Income-related Businesses (FRB) and recovery in its lodging business as it strengthens its pivot to a global real estate investment manager (REIM) with a focus on driving fee income.
Total PATMI for FY 2022 was S$861 million, lower than FY 2021’s S$1,349 million. This was mainly due to the absence of significant divestments in China3 that took place in FY 2021 and lower fair value gains from revaluation of investment properties. Despite challenges in the macroeconomic environment, the Group’s gross divestments in FY 2022 was S$3.1 billion, meeting its annual divestment target of S$3 billion, but below the exceptional year of FY 2021 when S$13.6 billion was divested.
Revenue for FY 2022 increased 25% year-on-year to S$2,876 million, boosted by higher contributions from FRB and real estate investment business (REIB). FRB revenue grew 6% year-on-year to S$955 million, supported by higher fee-related earnings (FRE) from private funds and lodging management. REIB revenue rose 40% year-on-year to S$2,110 million on the back of improved occupancy and room rates for lodging properties.
EBITDA for FY 2022 was S$1,966 million, lower year-on-year mainly due to lower gains from asset recycling and revaluation of investment properties, partially mitigated by improved EBITDA from operations.
Subject to shareholders’ approval, the Board is proposing a core dividend of 12.0 Singapore cents per share and a special dividend-in-specie of 0.057 CapitaLand Ascott Trust (CLAS) units per share valued at 5.9 Singapore cents1 per share for FY 2022, bringing the total dividend to 17.9 Singapore cents1. The total payout is approximately S$918 million1.
Financial highlights
|
2H2022 (S$ m) |
2H2021 (S$ m) |
Variance (%) |
FY2022 (S$ m) |
FY2021 (S$ m) |
Variance (%) |
Revenue |
1,522 |
1,244 | 22.3 | 2,876 | 2,293 | 25.4 |
Earnings before interest, tax, depreciation and amortisation (EBITDA) |
1,093 |
1,186 | (7.8) | 1,966 |
2,469 | (20.4) |
| Total PATMI | 428 |
647 |
(33.8) | 861 | 1,349 | (36.2) |
| Comprising: | ||||||
Operating PATMI1 |
263 |
233 | 12.9 | 609 | 497 | 22.5 |
| Portfolio gains2 | 135 | 178 | (24.2) | 222 | 616 | (64.0) |
| Revaluation gains and impairments | 30 | 236 | (87.3) | 30 | 236 | (87.3) |
Notes:
1. Operating PATMI refers to profit from business operations excluding any gains or losses from divestments, revaluations, and impairments.
2. Portfolio gains comprise gains/losses arising from divestments, gains from bargain purchase or re-measurement on acquisitions and realised fair value gains/losses arising from revaluation of investment properties to agreed selling prices of properties.
As at end-2022, CLI’s funds under management (FUM) stood at S$88 billion, driven by the acquisition-led growth of CLI’s listed funds and the launch of eight new private funds during the year. Including the CapitaLand China Data Centre Partners and CapitaLand China Opportunistic Partners Programme announced in February 2023, CLI’s embedded FUM would be S$96 billion, moving it closer to its FUM target of S$100 billion by 2024. Lodging units under management as at end-2022 numbered 159,000, and are on-target to reach 160,000 lodging units this year. Riding on the robust rebound of international travel, FY 2022 revenue per available unit jumped 40% year-on-year to S$110, close to the pre-pandemic level in 2019.
Mr Miguel Ko, Chairman of CLI, said: “CLI’s globally diversified and balanced real estate portfolio has contributed to its steady performance amidst significant uncertainties in FY 2022. Despite market volatility, CLI’s share price has remained resilient, demonstrating shareholders’ confidence in CLI’s long-term vision to be a top global REIM and the management team’s ability to execute its growth plans. The Board is pleased to propose a core dividend of 12 Singapore cents per share, in line with FY 2021, and a special dividend-in-specie of 0.057 CLAS units per share. CLAS has a healthy portfolio of lodging assets, and the proposed dividend-in-specie will enable shareholders to participate in and benefit from the recovery of the lodging and hospitality industry as international travel grows. We remain confident of the renewed momentum and future growth of CLI’s businesses as prospects for the global economy improve.”
"CLI’s globally diversified and balanced real estate portfolio has contributed to its steady performance amidst significant uncertainties in FY 2022. We remain confident of the renewed momentum and future growth of CLI’s businesses as prospects for the global economy improve.”
Mr Lee Chee Koon, Group CEO of CLI, said: “Our FY 2022 results were impacted by rising interest rates and China’s zero-COVID approach, which led to lower capital recycling activities and higher rental rebates to support tenants in China. We forged ahead with our longer-term goal by enhancing our asset and fund management capabilities, launching RMB-denominated funds and setting up new logistics and self-storage fund platforms in Southeast Asia. With the return of our ability to recycle capital in China as the country overcomes the worst of its COVID-19 situation, our underlying business is showing encouraging signs of recovery and we stand ready to act on the right opportunities as we pursue long-term growth sustainably.”
"With the return of our ability to recycle capital in China as the country overcomes the worst of its COVID-19 situation, our underlying business is showing encouraging signs of recovery and we stand ready to act on the right opportunities as we pursue long-term growth sustainably."
Commitment to sustainability
In line with its commitment to achieve Net Zero emissions by 2050, CLI continued to make progress towards building a resilient and resource-efficient portfolio. To date, CLI and its listed REITs and business trusts have partnered with 17 financial institutions to secure a total of S$12.3 billion in sustainable finance comprising sustainability-linked loans and bonds, green loans, green bonds and perpetual securities.
Last month, CLI was once again included in Corporate Knights Inc’s “2023 Global 100 Most Sustainable Corporations in the World” index, which lists the top 1% of corporations in the world based on their sustainability performance. CLI moved up 19 spots from a year ago to the 56th place in recognition of its global sustainability efforts, including its investment in greening its properties, achieving leading green building certifications as well as driving innovation through its CapitaLand Sustainability X Challenge and CapitaLand Innovation Fund.
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1 Based on CLI’s issued shares as at 31 December 2022 and CapitaLand Ascott Trust (CLAS)’s share price at market close on 22 February 2023. The actual dividend payment can only be determined on book closure date.
2 Operating PATMI refers to profit from business operations excluding any gains or losses from divestments, revaluations, and impairments.
3 In FY 2021, CLI divested partial stakes in a group of companies that owned six Raffles City developments in China at an agreed portfolio value of RMB46.7 billion.