A Mini Tour of Singapore’s Real Estate Companies

Singapore has its fair share of real estate companies.

Within the Strait Times Index (SGX: ^STI), Singapore’s market barometer, are companies such as CapitaLand Limited (SGX: C31)City Developments Limited (SGX: C09)Global Logistic Properties Ltd (SGX: MC0), and Hongkong Land Holdings Limited  (SGX: H78). The quartet are all heavily involved with the development and management of real estate.

To find out more, a recent report from bourse operator Singapore Exchange Limited  (SGX: S68) may come in handy as it covers a bevy of real estate managers and developers.

Here’re four quick highlights I had picked out from the report (figures are as of 29 January 2016 unless otherwise stated):

  1. The four aforementioned constituents of the Straits Times Index – namely Hongkong Land, CapitaLand, Global Logistic Properties, and City Developments – are the top four largest real estate management and development firms listed in Singapore. Hongkong Land tops the list with a market cap of $21 billion. The total market capitalisation of the group of real estate management and development firms, which includes 18 companies, is $90 billion.
  2. The average price to book (P/B) ratio of that group is 0.7. Within it, Wing Tai Holdings Limited (SGX: W05) sports the lowest P/B ratio of 0.37. At the other end of the spectrum is Oxley Holdings Ltd (SGX: 5UX) with a P/B ratio of 2.33.
  3. Oxley Holdings is also the top performing stock of the group with a 66% total return over the past three years. Blue chip companies Global Logistic Properties and City Developments had unfortunately recorded negative total returns of 33.4% and 36.2%, respectively, over the same timeframe.
  4. The fattest trailing dividend among Singapore’s real estate management and development companies comes from Frasers Centrepoint Ltd (SGX: TQ5). The firm has a dividend yield of 5.2%. Not to be outdone, Hongkong Land Holdings and Global Logistic Properties both offer dividend yields which are above 3%. For perspective, the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index, is offering a dividend yield of 3.8% as of 9 February 2016.

A comparison of different firms within the same industry on several aspects helps us understand the companies better and gives us clues on which company might be worth following. This may give us a head-start on our investing homework that follows.

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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 Chin Hui Leong owns shares in Hongkong Land Holdings.