Singapore’s first listed hybrid real estate investment manager, CapitaLand Investment (CLI) has risen from a pro forma net asset value (NAV) of $2.93 as at June 30 to more than $3.52 as at Sept 29.

CapitaLand shareholders were given one CLI share at an NAV of just $2.83. Now, CLI’s market cap — excluding the development business which is in Capitaland Development (CLD) — is $17 billion. CLI shares are trading at around a price to net asset value ratio (P/NAV) of 1.2 times. Based on FY2020 pro forma numbers, its EV/Ebitda is at around 19 times, which is the same value that ESR Cayman is paying for ARA Asset Management.

CLI shareholders own a company with stakes in real assets including REITs and funds. Furthermore, CLI has taken on expertise to move into alternative assets and private equity. CLI is likely to take smaller stakes in these new funds than it has done previously so returns on investment (ROI) and returns on equity (ROE) can be higher.

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