CapitaLand Dividend and Share Value Information: Is It Value Shopping for ?, Cash Information

With its now privatized real estate development division, CapitaLand is looking for new paths with an increased focus on investment management. Here’s What Investors Should Know About Moving.

In March of this year, CapitaLand announced, known for building a mall in every possible neighborhood (and somehow managed to get everything working without everything turning into a Panem-style battle for shoppers) , a split at.

The move would result in the property development business being spun off and privatized, while the rest of CapitaLand would focus on property investment management.

The company, renamed CapitaLand Investment Management (CLIM), is the third largest real estate investment management company in the world. It retains its shares in the REITs (Real Estate Investment Trusts) and the hospitality investments of CapitaLand.

What does this mean for the blue-chip company (and arguably one of Singapore’s best) and what benefits, if any, can private investors look forward to?

CapitaLand share prices over the past five years

With CapitaLand’s strong involvement in the retail, F&B and hospitality sectors, the negative effects of the Covid-19 pandemic were not spared. In fact, the company saw its share price decline to a low of $ 2.51 in November 2020.

However, it has made a compelling comeback since then, with stock prices soaring to previous highs. At the time of writing, CapitaLand’s share prices are up 20 percent compared to five years ago.

This is despite the ongoing rampage of the pandemic around the world and a surge in local cases resulting in a temporary tightening of social distancing rules from May 16 to June 20, 2021.

Amid these turbulent conditions, the rise in the share price could be an indicator of the market’s confidence in CapitaLand’s decision to split its real estate development arm into a private company so that a more investment-oriented company can generate value on the motherboard.

How much dividend do I get?

In terms of dividends, C31 was far from consistent. Over the past five years we’ve seen gross dividends between nine and 12 cents per share, with a five-year average return of 2.94 percent – an expected performance considering CapitaLand is one of Singapore’s leading blue-chip stocks .

Distribution plan for CapitaLand dividends

CapitaLand has paid dividends annually for the past five years. This usually took place in May, after the earnings consolidation at the end of the financial year in March.

So if you are invested in CapitaLand, you should note a payday in the calendar in the middle of May.

What are my risks?

If you can align yourself with the current sentiment, CapitaLand remains a safe bet for investors – some analysts expect an upward trend of 10 percent over the next 12 months, which would bring the share price above the $ 4 mark.

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In addition to the realignment to a more resource-efficient and capital-efficient status, this positive outlook is due to the recently announced acquisition of a hyperscale data center campus by CapitaLand in Shanghai, which serves two of the largest telecommunications providers in China.

By moving to new assets such as data centers, CapitaLand is relying on increasing global connectivity and demand for data.

This is a smart move considering how the Covid-19 pandemic has sharpened the demand for digital connectivity – and if CapitaLand succeeds here, shareholders will benefit from heightened uptrends.

What does the future look like for CapitaLand?

Like it or not, Covid-19 has made some long-lasting, even permanent, changes in the way we live, work and play.

In the office and hospitality sector, sentiment remains optimistic for the time being as it is assumed that workers will return to the office and travelers will fly again.

Brick and mortar retail could be shaky, however. Challenged by e-commerce and next-day delivery, shopping malls struggled even before the pandemic.

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And with thousands of SMEs in F&B and retail shutting down over the past two years, shopping center operators could experience a shock wave of unpaid rents and unfulfilled leases.

This could put downward pressure on REITs, which make up a large part of CapitaLand’s holdings. However, if there is anyone who can ride the wave, it is CapitaLand.

After all, this is the company that bit its teeth in Singapore’s frothy real estate sector and even managed to tame (some say to its detriment) the island’s unruly mall.

And with a renewed focus on investment management – free from the distractions of capital-intensive real estate development – and the foresight to develop investments in new markets such as data centers, CapitaLand should certainly remain on the blue chip list for many years to come.

This article was first published on SingSaver.com.sg.