Capitaland Investment

[Clement]

Would keeping the assets and liabilities of the REITs on its consolidated balance sheet present a more accurate picture of CLIM's economic performance? CLIM's business model is not really to invest in property, it is to provide investment management services to funds which invest in varying real estate assets around the world. While it does co-invest in the funds it manages, the company will generally prefer to invest as little as possible as investment managers are appraised on their distributable earnings. I would argue that the deconsolidation, if pursued, does provide a more accurate view of the performance of the business.

Regarding the marketing aspects, wouldn't it be an asset for an investment management company to have "best in class" marketing capabilities for investment products? It's shares form part of its offerings in the market, together with its other investment products. I would argue the opposite, that management of companies which are deeply undervalued due to their failure to engage with the market effectively, are doing their shareholders a disservice.