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Investing: Why CapitaLand Investments would be a good buy

The real estate manager saw its revenue grow by 23% YoY to $665m in Q122. 

CapitaLand Investments has presented itself to be a good buy for investors following a "solid" first-quarter performance.

Data from UOB Kay Hian showed that the real estate manager's revenue grew by 23% YoY to $665m.  its fee income-related and real estate businesses also posted revenue increases, rising by 17% YoY to $262m and 28% YoY to $403m, respectively.

Other key highlights for CLI during Q1 include the 9% YoY increase in the number of units in its portfolio to 135,000 units, and a better-than-expected fund fee rate of 51bps.

Apart from an impressive Q1, UOB Kay Hian said CLI's outlook for 2022 remains "strong" given its opportunities in China.

"CLI is a registered private equity fund manager in China with RMB denominated funds, it believes that it is in a prime position to take advantage of the onshore capital appetite as risk-off sentiment prevails in the West," UOB Kay Hian said.

Inflation is also not a worry for CLI as it believes that it is largely insulated from it "given that it has a broad ability to pass through inflation via its lease structures."

"Within its Singapore portfolio, for example, higher energy costs can be passed onto its tenants via the fair tenancy framework," the analyst added.
 

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