not vested
CAPITALAND INVESTMENT LTD (CLI SP)
Recommendation : BUY
Fair Value : SGD 3.83
EVENTS PANNING OUT NICELY.
Encouraging trends from 3Q21 business updates
Funds under management grew 9% from end-2020 to SGD84.3b
Higher NAV per share and lower net gearing ratio.
CapitaLand Investment Limited (CLI) has emerged as a more nimble and resilient entity following its strategic restructuring, and we believe it would operate with a more asset-light business model with strong focus on recurring income streams.
Management has reiterated its target of achieving a funds under management (FUM) target of SGD100b by 2024, and would continue to focus on new economy assets such as logistics and data centre properties.
Although CLI’s lodging management business has been impacted by the pandemic, it has mitigated this by focusing on management and franchise contracts.
CLI had 129k lodging units under management, as at end-9M21, and management aims to grow this to 160k units by 2023.
Capital recycling would also remain as one of CLI’s key focuses, with an annual divestment target of SGD3b.
Source: OCBC