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4 Stocks This Week (Property) [11 Jun 2017]: CapitaLand; Straits Trading; OUE; GuocoLand

This week we look at 4 Singapore listed property developers that have been making news.

Market Sentiments

Globally, there were several key events took centerstage this week. In the UK, there was even more instability as another shock election result left no single party with commanding majority in Parliament. This comes less than a year after the historic Brexit referendum where United Kingdom (UK) voted to leave the European Union (EU).

Coupled with ongoing uncertainties in the United States of America (US), where recently fired ex-FBI Director James Comey testified on Russian involvement of Trump’s presidential campaign in the Senate, investors were definitely kept at the edge of their seats.

In Singapore market, there were both bright sparks and looming fears. Without any clear indication on where the economy is headed, volatility in the markets will likely increase.

This week, Singapore signed an MOU with Myanmar to further strengthen economic ties between the two countries. Already the largest foreign investor in the country, the MOU will open more doors to collaborations on strategic infrastructure projects as the country’s urbanisation continues.

Another reason for Singaporean investors to rejoice was the admission of iFast Corporation as an SGX securities trading and clearing member. This will likely pave the way for retail investors to use iFast’s online trading platform to carry through trades that are lower than what most local brokerages are offering. This piece of news was well received, and iFast Corporation’s share price surged over 18% on the back of it.

Read Also: Idiot’s Guide To Starting Your Investment Journey In Singapore

Property Market

Singaporeans love property our investments. With en bloc fever back in the markets, Singaporeans are again looking to jump on their favourite investment class.

We look at several companies that have announced significant news in the market, and look at how they have performed over the past week.

Singapore listed Aspial Corporation also went ahead with its plans to spinoff its Australian and Malaysia property arm, World Class Global, raising $21.9 million in an Initial Public Offering (IPO) in Singapore. The firm also has businesses in jewellery, pawnshops and property development in Singapore.

#1 CapitaLand Limited (SGX: C31)

With a market capitalisation of close to $15.5 billion, CapitaLand is one of the largest real estate companies in Asia. The company is the owner and manager of diverse property portfolio comprising integrated developments, shopping malls, serviced residences, offices, homes, real estate investment trusts (REITs) and property funds across more than 140 cities globally.

At the forefront of the property development scene, CapitaLand has always strived to break new grounds as a Singaporean property developer. To continue staying ahead, it has experimented with new concept and incorporating advanced technology into its management solutions.

Managing CapitaLand Mall Trust’s Funan mall, it has already embarked to reinvent the way people visit malls by incorporating indoor cycling and sports facilities as well as incorporate the latest technology in cinematic and F&B industries.

Read Also: These 10 Listed Companies In Singapore Pretty Much Own Everything: (Part 2: 1-5)

Another landmark project is its 49% owned Changi Jewel, which will house a 40m high rain vortex, one of the largest indoor collection of plants in Singapore and a 50m long canopy bridge. By making a visit to malls an experience on top of retail purpose, it is redefining the use of space in malls.

This week, it announced its optimism to grow its Japan portfolio on the back of opening its Ascott Marunouchi Tokyo, the first luxury serviced residence in Japan under its Ascott brand.

Its share price has risen 19.2% since the start of the year and 22.0% in the past 52 weeks.

#2 Straits Trading Company Ltd (SGX: S20)

Straits Trading Company (STC) invests in the property sector by taking up strategic stakes properties, property management companies and operators of hospitality properties. This is different to actually developing properties, and much closer to how individual investors see themselves investing in properties.

This week, STC announced a $124 million investment in an office building in Sydney. This acquisition is in line with its strategy to diversify into real estate properties which deliver higher returns than its current low-yield but very high quality real estate properties.

Read Also: Property Lovers In Singapore: Invest Via Condos, REITS Or Real Estate Companies?

Since the start of the year, STC has returned 31.8%, and in the past 52 weeks, this number remains at a high 26.1%.

#3 OUE Limited (SGX: LJ3)

OUE is a diversified real estate owner, developer and operator with real estate properties located in Asia and the US. The group also manages, and is a significant shareholder, in two SGX listed REITs – OUE H-Trust and OUR C-REIT.

Also Read: 7 Types of REITS In Singapore, And The Reasons Why People Invest In Them

OUE has a diversified base of real estate properties encompassing hospitality, retail and leasing, commercial, residential and its hospitality and commercial REITs. Click through to its website to see these properties.

Recently, it was also the focus of a takeover of International Healthway Corp.

Since the start of the year, it has returned 12.0%, and in the past 52 weeks, it has delivered a return of 29.2%.

#4 GuocoLand Limited (SGX: F17)

GuocoLand is another property developer which has been in the news lately with its 3.85%, $170 million bond issue. With a market capitalisation of over $2.2 billion, it will likely see good demand from yield hungry investors looking for quality companies to park their money with in the Singapore market.

GuocoLand has already issued four bonds since the start of the year – three in Singapore dollars and one is Hong Kong dollars.

As an award-winning developer with a portfolio comprising the Tanjong Pagar Centre in Singapore, Shanghai Guoson Centre in China, Damansara City in Malaysia and The Canary in Vietnam, it has a landmark project in each of its core markets.

It has delivered a return of 3.6% and 5.6% since the start of the year and in the past 52 weeks respectively.

Read Also: 4 Stocks This Week (ETFs) [4 Jun 2017]: Straits Times Index; ABF Singapore Bond Index Fund; S&P 500; Gold Shares

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. 

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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.