Capitaland Investment

[weijian]

EVA is roughly calculated by taking the PATMI + interest cost to derive the net operating profit after tax (NOPAT). Then NOPAT is subtracted with the weighted average cost of equity (WACC) to derive economic value added (EVA). In essence, EVA tracks how much additional value an operator has added after accounting for the cost of capital.

I have read quite a lot of annual reports (SGX listings) and agree with CLI's answer that EVA is not commonly adopted. The last time CLI's EVA was positive was in 2021 when (a) interest rates were still low, hence lower WACC, (b) it recognized a big FV gain from selling a bundle of Raffles City developments in China....Since then, WACC has gotten higher (due to higher rates) and NOPAT has gotten lower (largely due to China revaluation losses) and there is little hope it can turn a positive number. It takes a brave soul to continue to report numbers that undermine your credibility and after voluntarily report EVA for a couple of years, it has been voluntarily removed this year. But this removal has not escaped the eyes of a shareholder. On another note, CLI Mgt's remuneration disclosure is relatively thorough and we can see a "EVA bonus" component. So OPMIs can be sure that if CLI has got the right incentives to continue to work on positive EVA for the medium term.

Annual General Meeting to be held on 28 April 2026 Responses to Substantial and Relevant Questions Received from Shareholders

11. Economic Value Added (EVA) was not disclosed in the FY 2025 Annual Report - why so? Can the Company quantify the EVA attributable to shareholders for FY 2025? Is EVA still negative, as it has been in prior years?

Answer:
The Board periodically reviews the relevance of the performance metrics disclosed. EVA is a voluntary metric and is not commonly adopted among CLI’s listed investment management peers.

In this context, metrics such as Operating PATMI, Total PATMI, FUM growth and fee-related revenue provide a more meaningful representation of CLI’s operating performance and value creation for shareholders. CLI remains committed to transparent reporting and continues to provide shareholders with comprehensive, audited disclosures to assess the Company’s performance.

https://links.sgx.com/FileOpen/20260423%...eID=885193

[weijian]

It hasn't been all smooth sailing at Mapletree related funds (whether listed and unlisted) and so CLI mgt/OPMIs are probably wary of a combination with Mapletree's AUM arm. In addition as of mid 2026, CLI has reduced its global headcount by a high single digit after peaking some time in 2025 and so any sort of merger probably runs contrary to that as well. Nonetheless, in the longer run, getting Mapletree Investments (at least the AUM arm) listed will probably be good for Temasek/Spore equity scene on the whole.

Temasek should publicly state its position on the long-rumoured CapitaLand-Mapletree merger

[SINGAPORE] The long-rumoured merger of CapitaLand Investment (CLI) and Mapletree Investments appears to have stalled, according to news reports last week. For some investors, this might have been something of a relief.

Among the factors cited last week that apparently prompted CLI and Mapletree to shelve their discussions about a merger were concerns about valuation, disagreements about personnel revamps, and how weak business performance in some areas would be handled.

Yet, despite being a shareholder of CLI and a unitholder in some of its Reits, I cannot help but feel a little disappointed that a merger may no longer be on the cards. With increased operational scale, the combined entity would have been in a better position to compete internationally.

This larger and more competitive real estate investment group would probably also have helped raise the profile of the Singapore market.

For instance, could it have pushed the boards and top management of the two groups to agree on a strategy to handle their underperforming businesses, and steered them towards the appointment of a slate of suitably qualified executives to run the merged entity?

Could Temasek have supported a carve-out of some of MPACT’s weaker assets in order to improve its market valuation and pave the way for a combination with CICT?

https://www.businesstimes.com.sg/opinion...ree-merger

[EnSabahNur]

It hasn't been all smooth sailing at Mapletree related funds (whether listed and unlisted) 

Interestingly, the picture in this article paints a mixed picture.

https://www.bloomberg.com/news/articles/...d-to-stall

It wasn't all bad for Mapletree nor all good for CLI

CapitalLand and Mapletree-Backed REITs' Mixed Performances
● 1 Year Total Return
REIT
1 Year Total ReturnCapitalLand Integrated Commercial Trust
+18.4%
CapitalLand Ascendas REIT
-6.0%
CapitalLand Ascott Trust
+7.9%
CapitalLand China Trust
-10.9%
CapitalLand India Trust
-3.3%
Mapletree Pan Asia Commercial Trust
+10.9%
Mapletree Logistics Trust
+5.9%
Mapletree Industrial Trust
-0.2%
Note: Data as of July 22, 2026 Source: Bloomberg

[weijian]

Hi EnSabahNur,

Just to add more color to my comment on Mapletree Investments' funds.

It is actually more qualitative than quantitative, and I am definitely not using 1year TSR of their 3 listed funds to make an assessment on Mapletree Investments. Here are just some of my quantitative assessments made over the past few years:

(A) Merging Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) into its current form MPACT in 2022. On hindsight, I would say the whole merger was done not to serve individual unit holders better but only the Sponsor better. The whole process of first having a "below NAV" merger price for MNACT before subsequently sweetening the offer, actually pleased no one in the end - because MCT owners paid fair prices for assets that continued to get worst, while MPACT shareholders (led by Quarz Capital) had to fight dearly for a cash-offer as there was none in the first place.

(B) Mapletree Global Student Accommodation Private Trust (MGSA) expected to lose 80% of its investor's money (excluding distributions). MGSA came to my radar when I was reading Metro Holdings' results. MGSA, a close end fund was incepted in 2017 with 12% IRR target but only returned 1% by end 2025. At maturity in 2026, it asked for an extension to allow "an orderly wind-down" of the fund - in other words, it was unable to sell its assets at fair value on the open market. And at that time, FV was already ~50% below its inception date in 2017. ~90% of MGSA LPs rejected the extension and went for immediate liquidation.

( C) Mapletree Industrial Trust (MIT)'s North American Portfolio. MIT acquired the majority of its North American Portfolio of data center assets in 2020-2021 and touted themselves as the "biggest AP REIT holder of data centers". These data centers were largely purchased from insiders, ie. locals who know the industry's heartbeat. On hindsight, these assets were at the wrong end of their technological useful period. The ongoing data center boom is probably going to accelerate the obsoletion clock.

--------

That all said. I am not advocating that Mapletree Investments is all bad and CLI (which I am vested) is all good. Investing is never that black or white, but despite so, it should be contrasted and matched to market's expectations.

[EnSabahNur]

Hi Weijian

apologies if I have given you the wrong impression that I was challenging your reply. I also had the view that Capitaland is the "better" manager, given the corporate actions you listed.

Although 1 year TSR is not a perfect metric, I was a little surprised to learn that the performance in the last 1 year was mixed.
Then again, 1 year is too short, and doesn't include the private funds.

[weijian]

Hi Weijian

apologies if I have given you the wrong impression that I was challenging your reply. I also had the view that Capitaland is the "better" manager, given the corporate actions you listed.

Although 1 year TSR is not a perfect metric, I was a little surprised to learn that the performance in the last 1 year was mixed.
Then again, 1 year is too short, and doesn't include the private funds.

Hi EnSabahNur,

In 2023, CLI gave Capitaland Ascott Trust (CLAS) units as a dividend in specie and CLAS announced a rights issue just 3 months later. CLI's official statement was "we are seeing a rebound in tourists post covid opening and we hope that our unit holders can benefit directly from it as well". You can't argue with that. But similarly, one can't argue about the poor timing. It left such a bad taste that non-CLI take-up of those rights were very low and CLI had to mop up the excess. So there you have it - an instance of CLI not been a "good manager".

As for CLI's private funds, my understanding is that the majority of it are still development related, ie. funds that develop real estate and then hold/operate them. Since spin-off, such development funds are considered legacy. All new private funds raised in the past few years have specific investment themes and follow closer to that of the big AUM managers (KKR/Apollo etc).

[weijian]

I have to admit that as a CLI shareholder, there was some comic relief when I read my CEO Chee Koon's PR. It seems that he has copied well from other CEOs...

"value realisation" --> A Singtel word?
"legacy investments" --> very Keppel-ish
"clear right to win" --> I remember reading it from my fav "skin in the game" CEO Lincoln Pan of JMH

CapitaLand Investment’s Operating Profit rises 13% YoY; Sharpens focus to accelerate growth and unlock shareholder value

• Operating PATMI rose 13% YoY led by stronger fee income from the Listed and Private Funds Management platforms
• Scaling Listed and Private Funds as dual growth engines to drive higher recurring income and sustainable earnings growth
• Identified S$7-9 billion of embedded value in non-core investments for capital recycling and value realisation

The strong performance of CLI’s fee business supports the next phase of its growth strategy – scaling its Listed and Private Funds Management platforms while unlocking value from non-core and legacy investments. To sharpen execution and enhance value creation, the Group will organise its portfolio into two distinct segments: Core Business and Non-Core Business, providing a clear framework for growing recurring earnings, recycling capital and delivering long-term shareholder value.

Mr Lee Chee Koon, Group CEO, said: “Our strong 1H 2026 performance reflects the growing contribution of our fee-related business and the strength of our integrated real asset management platform. As we build on this momentum, we are sharpening our focus on areas where we have scale, competitive advantages and a clear right to win. By concentrating
capital and resources on our core growth platforms while accelerating value realisation from non-core and legacy investments, we will enhance capital efficiency, strengthen our balance sheet and support sustainable shareholder returns.”

1H26 PR: https://links.sgx.com/FileOpen/CLI%201H%...eID=900703

[LionFlyer]

"value realisation" --> A Singtel word?
"legacy investments" --> very Keppel-ish
"clear right to win" --> I remember reading it from my fav "skin in the game" CEO Lincoln Pan of JMH

These are terms used by mgmt. consultants. Am one myself and it is an affliction and curse on the english language.

[specuvestor]

Thanks for the comic relief

But I think the major difference is he is the same guy since listing

[weijian]

@LionFlyer,
I have been following CLI quite closely since the asset mgt and development arm demerged in late 2021. Everything they have talked about (or done) is not very different from what they presented in the latest 1H26 PR. Therefore, 1H26 PR talk is just "old milk in new packaging". In general, I have seen a step-up of such corporate speak on the local listed scene and it could be a result of the Value-Unlock program's incentives (suppose your company is doing great biz now! )

@specuvestor,
Since Chee Koon was appointed Group CEO in Sept2018, quite a couple of corporate manoeuvres happened under his watch - Ascendas-Singbridge purchase in 2019, Capitaland's privatization by Temasek in late 2021 and adding Oakwood WW into its serviced apartment operations (bought from Mapletree Investments). In 2025, CLI acquired new capabilities to expand its asset mgt bench - Wingate (private credit) and SC Capital Partners (private fund mgt driven). Even as headwinds like the heavy China real estate exposure and higher interest rates are working against him and his team, I have no doubt he is the right man for the job. I just hope someone else drafted that PR instead!

@swakoo,
Have shifted your post to the Singtel thread.