The Most Important Companies in Singapore: Property Developers
There are close to 750 companies in the Singapore stock market. But only a select few are important enough to be part of Singapore’s Straits Times Index (SGX: ^STI).
The STI is made up from 30 of the largest listed companies on the Singapore stock market. These blue-chip companies come from a variety of industries and sectors. The real estate development industry is a big contributor to the index with the presence of four companies representing this sector. Let’s have a look at these companies.
1. Capitaland Ltd (SGX: C31) is the one of the largest real estate companies in Asia with assets under management (AUM) totalling a staggering S$93 billion. The property developer has built many iconic buildings around the world, including Ion Orchard in Singapore, and Raffles City in Beijing and Chongqing. These are just three examples of the assets the company owns. As part of the STI index, CapitaLand has a weightage that is close to 3%. The company’s market capitalisation stands at S$13.8 billion, and it has delivered total returns of 31.8% over the past three years. CapitaLand currently trades at a price-to-book (PB) ratio of around 0.7, and pays out a dividend of 3.7%.
2. Hongkong Land Holdings Limited (SGX: H78) is the second company and is part of Jardine Matheson Holdings Limited (SGX: J36). The real estate owner and developer owns a staggering 856,000 sq.m. of prime office and luxury retail properties in key Asian City, and has 8.5 million square-meters of developable area in seven countries. Hongkong Land’s weightage on the index stands at 3.9%, and shares has returned just 5% to investors over the past three years. At current prices, the property developer has a market capitalisation of US$16.0 billion and a yield of around 3%.
3. City Developments Limited (SGX: C09) is the third real-estate developer on the index. CDL is a leading global real estate company with a network spanning 100 locations in 28 countries and regions. The company’s portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls. Over the last 50 years, CDL has developed over 40,000 homes and owns over 18 million square feet of lettable floor area. CDL weighs at around 1.5% of the index. At current prices, it has a market capitalisation of S$8 billion and a dividend yield of 2.3%. The past three years have seen its shares return 11.9% to investors.
4. Keppel Corporation Ltd (SGX: BN4) is the fourth company involved in real estate development by virtue of its ownership of Keppel Land. Keppel Land was previously listed on the Singapore market but was delisted on 16 July 2015. The company is geographically diversified in Asia, with Singapore and China as its core markets; Vietnam and Indonesia are its growth markets. At the end of 2015, Keppel Lands’s total assets amounted to about $14.9 billion. Some of the notable developments by Keppel Land are Marina Bay Financial Centre and Ocean Financial Centre. Keppel Corporation is trading at market capitalisation of S$11.9 billion, and pays a dividend yield of 3.7% currently. On the index, Keppel Corporation has a weightage of 3.4%, and over the past three years, it has returned 6.0% to investors.
To sum up, real estate developers collectively account for 11.8% of the STI. Compared to the banking sector, the real estate development sector doesn’t have as much sway. Still, all the real estate companies mentioned above have a prominent presence in Singapore as seen by the many malls, offices and residences which have been built by them.