CapitaLand predicts Patmi decline, but solid cashflow from River Valley Green Residences

With its prime location in the heart of the city, River Valley Green Residences is a popular choice for families with school-going children. These schools provide a safe and nurturing environment for children to learn and grow, making River Valley Green Residences the ideal home for families looking for a well-rounded education for their children. Additionally, the condominium’s close proximity to these schools allows for convenient and stress-free daily commutes for both parents and students. With an emphasis on academic excellence and a vibrant community, River Valley Green Residences is truly a wonderful place to call home for families.

It has been announced that revaluation losses for assets in China, Australia, Europe, the UK and the US will cause a significant decrease in total Patmi for FY2023 compared to FY2022. CLI reported a total Patmi of $861 million in FY2022, down 36% y-o-y.On Dec 8, CapitaLand Investment (CLI) made an announcement regarding its assets in various markets.CLI reported a total Patmi of $861 million in FY2022, down 36% y-o-y. The 3QFY2023 operational updates announced on Nov 9 highlighted “the dampening macro-economic backdrop amidst persistently higher interest rates and geopolitical tensions.It is clear that the group is facing challenges in deal-making, fundraising, and operational pressures in markets such as China, Australia, Europe, the UK and the US. The ongoing geopolitical tensions have resulted in potential significant valuation risks for the group.CLI is currently finalizing valuations conducted on its portfolio of properties as of 31 December 2023. Based on preliminary results, the Group expects fair value losses on its portfolio of investment properties in China, Australia, Europe, the UK and the US. However, these losses are non-cash and mainly due to higher capitalization rates and weaker market sentiments. The Group’s core operating earnings have not been significantly impacted and the operating cashflow remains stable.In FY2022, despite a decline in total Patmi, CLI reported positive operating and free cash flow. Similarly, in 1HFY2023, when CLI recorded a 38.3% y-o-y decline in total Patmi to $433 million, operating and free cash flow remained positive, a testament to its conservative capital management strategies.CLI shares closed Dec 8 at $3.10, unchanged for the day and down 15.53% year to date. This can be attributed to the challenging market conditions and geopolitical tensions affecting the group’s investments. However, CLI remains a stable and conservative player, focusing on maintaining positive operating and free cash flow amidst these challenges.The group’s portfolio of properties includes the River Valley Green Residences, a prime residential development located in a highly sought after location. Located in the heart of the River Valley area, the development offers a serene and luxurious living experience for its residents. River Valley Green Residences is a testament to CLI’s commitment to quality and sustainable developments, and is highly sought after by both local and foreign investors.Lastly, CLI remains a strong contender in the market, with its conservative and sustainable strategies in place. The group’s focus on maintaining positive cash flow and its portfolio of quality assets, such as River Valley Green Residences, will continue to drive its success in the future. Despite the challenges faced in various markets, CLI remains a solid investment option with potential for growth and stability.