The Real Estate Giants of the Singapore Stock Market

The SGX Real Estate Index is an index made up of 50 Singapore-listed real estate companies. It also houses some of the largest real estate companies in the local stock market.

A recent report had provided some insight on the diverse range of real estate companies that the index offers. Here’s what I had learnt about the index’s five largest stocks from the report as well as from other sources (data as of 26 August 2016, unless otherwise stated):

  1. Sitting at the top of the heap is Hongkong Land Holdings Limited (SGX: H78). True to its name, the majority of the company’s properties are located in Hong Kong. Hongkong Land Holdings has a market capitalisation of S$14.9 billion. Its shares have produced total returns of 36.4% over the last five years.
  2. CapitaLand Limited  (SGX: C31) is next, weighing in with a S$13.3 billion market cap. The firm’s core markets are Singapore and China. CapitaLand’s shares have performed marginally better than Hongkong Land, clocking in a total return of around 41% over the same period.
  3. In third place is Global Logistic Properties Ltd (SGX: MC0). The company describes itself as a leading provider of modern logistics facilities in China, Japan, Brazil, and the United States. Global Logistic Properties has a market cap of S$8.9 billion and has generated total returns of around 27% over the last five years.
  4. City Developments Limited (SGX: C70) clinches the fourth spot. The real estate operating company weighs in at a little over S$8 billion and has a global presence in 26 countries. It also has hotel assets that come from its stake in Millennium & Copthorne Hotels, one of the largest hotel groups in the world. Sadly, shares of City Developments have produced total negative returns of 5.5% over the past five years.
  5. A real estate investment trust (REIT), CapitaLand Mall Trust (SGX: C38U), checks in at fifth spot. The REIT houses some of the most popular shopping malls around Singapore and has a market cap of S$7.7 billion. CapitaLand Mall Trust also outperformed its sponsor, CapitaLand, by producing a 54.2% total return over the last five years.
  6. The SGX Real Estate Index has a weighted average price-to-book ratio of 0.9 and it has produced an average return of over 82% in the last five years. This means that all five stocks above have lagged the average total return of the real estate index.
  7. Incidentally, all five real estate stocks are also components of Singapore’s market barometer, the Straits Times Index (SGX: ^STI).

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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.