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5 Things You Should Know About CapitaMalls Asia

IonIf you’ve ever shopped at Plaza Singapura, gone ice skating at JCube, bought electronics at Funan Digitalife or enjoyed dinner at Ion Orchard, you’ve experienced the work of one of Singapore’s most prolific shopping mall developers – namely CapitaMalls Asia (SGX:JS8) and (HKEx:6813).

Founded in 2004, and based in Singapore, the investment holding company is a subsidiary of CapitaLand Limited (SGX:C31) and develops, owns and manages many of our most popular shopping malls.

It also manages real estate investment trusts and provides property investment, management, leasing and consultancy services.

But did you know….

  1. CapitaMalls Asia currently manages 102 shopping Malls worth $32.3bn across 52 cities in Singapore, Malaysia, China, Japan and India, including Hongkou Plaza in Shanghai, Olinas Plaza, Tokyo and Gurney Plaza in Penang.
  2. One of its newest ventures, The Star Vista, is Singapore’s first, naturally cooled mall, due to its environmentally friendly layout, which encourages air movement – and has been awarded Green Mark Gold by the Building and Construction Authority.
  3. Income investors take note: CapitaMalls Asia saw its dividend yield triple between 2009-2012.

CapitaMalls Asia certainly had a successful year in 2012, achieving record net profits of S$546m – an increase of 19.7%. It has also seen some of the fastest dividend growth amongst blue chip shares over the last five years.

More recently, CapitaMalls Asia revealed a first quarter net profit rise of 9.6% to S$73.2m, as compared to the same time last year.

But while the company is confident that its key markets in China, Singapore and Malaysia will continue to grow, shopper traffic at CapitaMalls Asia’s Chinese malls has fallen by 0.9%, year-on-year, which is likely to be due to bird flu (H7N9 virus) fears.

Fortunately, fewer shoppers seem to be spending more, as the same retail operations reported a 16% growth in sales during the same period. And while many analysts reckon there is potential for avian flu fears to result in further reductions in shopping mall footfall in the near term, sustained long-term impact is unlikely.

Indeed, with additional shopping malls due for completion in 2013, including two in Singapore (Westgate in Jurong and Bedok Mall) CapitaMalls Asia looks in good shape to achieve its goal to “strengthen its market position as a leading developer, owner and manager of shopping malls in Asia”.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.