CapitaLand says that its 1QFY2021 ended March shows ‘continued recovery’ for its portfolio, though at a varied pace across its different markets.
CapitaLand’s assets under management stood at $137.7 billion as at March 31, according to the quarterly business update dated May 12. The group did not provide details on key financials such as revenue and earnings.
The group reported a “significant rebound” in residential performance, with sales value in Singapore and China growing more than four times to $138 million and RMB4 billion ($828 million) respectively compared to the year before on the back of higher units sold. Sales value for Vietnam remained negative, though at a smaller of amount of $1.6 million compared to $16 million the year before.
For its retail portfolio, CapitaLand notes that rental reversions remain muted, though shopper traffic and tenants’ sales improved across China, Singapore and Malaysia. China saw the most significant increase in the 1QFY2021, with shopper traffic and tenants’ sales up 69.4% and 56.4% y-o-y respectively. Singapore saw shopper traffic decline 26.6% y-o-y, though it improved on a q-o-q basis and tenants’ sales grew 4.6% y-o-y.
Malaysia’s retail performance showed the least improvement, due to downward pressure from Malaysia’s continued nationwide movement control order, with shopper traffic and tenants’ sales down 34% and 12.4% y-o-y. Committed occupancy rate was also the lowest for Malaysia (87.6%), compared to China (90.7%) and Singapore (97.2%).
For its workspace portfolio, CapitaLand reports office occupancy rates ranging from 84.2% to 98.7% across its geographical markets, while business parks, industrial and logistics assets had occupancy rates between 87.2% to 98.6%. Singapore, in particular, had occupancy rates of 91.1% and 94.9% for the two asset classes respectively.
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In terms of its lodging portfolio, overall revenue per average unit (RevPAU) decreased by 28% y-o-y to $76, following lower performance across markets except for China. On a q-o-q basis, RevPAU declined 5% given lockdown restrictions across several markets.
CapitaLand’s fund management fee related earnings (FRE) increased 30% y-o-y to $99.8 million in the 1QFY2021, driven by higher transactional activities due to improved market sentiments . It also saw $1.6 billion or 2% growth in fund assets under management (FUM) since end-FY2020 mainly due to acquisitions made by listed and private vehicles.
To that end, total fee income grew 9% y-o-y to $203.6 million, driven by the increase in REIT and private fund management fees following the growth in FUM.
The group reported cash and available undrawn facilities of $14.8 billion, with net debt-to-equity ratio of 0.65 times as at March 31.
On its proposed restructuring - involving the consolidation and listing its of investment management platforms and lodging business, concurrent to the privatisation of its real estate development business - CapitaLand noted that it is planning to release scheme documents and hold a shareholders meeting on the matter in the 2H2021.
Shares in CapitaLand closed 4 cents or 1.11% lower at $3.58 on May 11.
