CapitaLand is synonymous with real estate in Singapore. As one of Asia’s largest diversified real estate group, most Singaporeans would already know of, and have interacted with the brand. Outside of Singapore, the group also holds large portfolio spanning across multiple countries in Asia and outside of Asia.
Investing in CapitaLand may not always be as straightforward as it seems. That’s because the group has a total of eight stocks which are listed on the Singapore Exchange. Each of these stocks offer a different investment proposition to investors, though the common similarity (besides being part of the CapitaLand group) is that the stocks are all involved primarily in real estate.
As observed by SGX Market Strategist Geoff Howie, the eight stocks account for close to 12% of the day-to-day turnover of the SGX and has delivered a year-to-date (YTD) average return of about 28%. This means if you have invested equally into each of these eight stocks at the start of 2019, you would have earned a return of 28% for the year thus far. Total market capitalization of the eight stocks is currently at S$53 billion.
In this week’s edition of 4 Stocks This Week, we look at the 4 biggest stocks within the CapitaLand group and find out for ourselves the investment proposition that each of these stocks offer for investors, and how they have performed for the year thus far.
CapitaLand Limited (SGX: C31)
Think of CapitaLand Limited as the parent of the group. It develops residential, retail and commercial projects both within Singapore and many other regions across Asia and also internationally.
Investing in CapitaLand is akin to owning a part of many of CapitaLand business units. CapitaLand owns and manage a global portfolio of about $100 billion. As a major conglomerate, it’s well positioned to take advantage of growth in real estate across Asia.
Since the start of the year, year-to-date return for CapitaLand is at 17%. The company currently has a market cap of about $18 billion and is trading at a price-to-book (PB) value of 0.658 and a price-to-earning (PE) of 9.2.
CapitaLand Commercial Trust (SGX: C61U)
With a market capitalization of $8.1 billion, CapitaLand Commercial Trust is the first and biggest commercial REIT listed on the SGX.
The company owns a portfolio of quality offices. Office workers who work in the CBD will be familiar with commercial building and offices such as Capital Tower, Asia Square Tower 2, Raffles City, Six Battery Road & CapitaGreen. Basically, you invest in the stock if you want exposure to commercial offices in Singapore.
From a valuation standpoint, its PB ratio is 1.14 and its PE ratio is currently 20.3. Dividend yield is currently at 3.4%.
Since the start of the year, YTD return is at 28%. Stock price is currently at $2.12, up from $1.76 as of the start of the year.
CapitaLand Mall Trust (SGX: C38U)
If you are looking at shopping malls instead and convince that malls will continue to be a gold mine in Singapore’s real estate sector, then you should definitely be looking at CapitaLand Mall Trust.
Established since 2002, CapitaLand Mall Trust owns and operate 15 major shopping malls in Singapore, all of which are familiar household names among Singaporeans.
They are Junction 8, IMM Building, Bugis Junction, Raffles City, Bukit Panjang Plaza, Clark Quay, Westgate, Tampines Mall, Plaza Singapura, JCube, Lot One, The Atrium@Orchard, Bugis +, Bedok Mall and the recently revamped Funan. In total, these 15 malls get about 338 million annual shopper traffic.
Buying into this stock essentially means owning a pie of the shopping malls in Singapore.
From a financial standpoint, PB for the stock is at 1.25 while PE is at 15.2. Since the start of the year, the stock has given investor a return of about 19%.
Ascendas REIT (SGX: A17U)
Ascendas Reit is Singapore’s first and largest listed business space and industrial REIT, with a portfolio diversified across five major segments of the business space and industrial property market. It owns and operate about 100 properties in Singapore, 30 properties in Australia and 3 in China. It has a market capitalisation of about $9.7 billion
YTD return for 2019 for the stock is 24% with an indicative dividend yield of 5%. The stock is currently trading at a PB of 1.42 and a PE of 18.7. Investors who are looking for exposure in the industrial property sector in Singapore can consider investing into this company.
If you want to find out more about the CapitaLand group of stocks, you can refer read the full report by SGX here.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.