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The Most Important Blue-Chips In Singapore’s Stock Market: CapitaLand Group

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. However, there is one family of companies which hold a greater clout on STI compared to most other companies. Let’s a closer look at CapitaLand Limited (SGX C31) in this article (data as of end of August 2018):

1. CapitaLand 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$13.6 billion, and it has delivered total returns of 31.8% over the past three years. CapitaLand currently trades at an undemanding price-to-book ratio of around 0.7, and pays out a dividend of 3.7%.

2. CapitaLand Mall Trust (SGX:C38U) is a retail-based real estate investment trust (REIT) that was spun out from CapitaLand, and was listed on the Singapore market in 2001. CapitaLand owns 29.3% of CapitaLand Mall Trust. The REIT’s current weightage in the STI is 1.8%. CapitaLand Mall Trust has a presence in most neighbourhoods in Singapore with a total of 16 malls around this city state. The REIT’s market capitalisation of S$7.5 billion today also makes it the second largest REIT by size. The last three years have seen CapitaLand Mall’s total returns come in at a respectable 29.2%. At current prices, it offers a distribution yield of 5.3% while its PB ratio comes in at 1.04.

3. The third CapitaLand Group company in the STI is CapitaLand Commercial Trust (SGX:C61U). Like CapitaLand Mall Trust before it, CapitaLand owns a 32.1% stake in CapitaLand Commercial REIT. The commercial based-REIT was listed on the Singapore market in 2004, and currently owns nine commercial properties in Singapore and one in Germany. CapitaLand Commercial Trust’s weightage in  the STI is 1.5%. Over the past three years, the REIT has returned a staggering 60.4% to investors. The REIT trades at a market capitalisation of S$6.5 billion currently, and provides a distribution yield of 4.9%. Units are currently priced around its book value.

Collectively, the CapitaLand Group has an weighting of approximate 6.3% in the STI, while the total market capitalisation of the trio adds up to a cool S$27.6 billion. Interestingly, all the three stocks have also done reasonably well over the past three years.

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The Motley Fool Singapore contributor Esjay contributed to this article. Esjay owns units of CapitaLand Mall Trust. 

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Commercial Trust, and CapitaLand Mall Trust. Motley Fool Singapore writer Chin Hui Leong owns units of CapitaLand Mall Trust.