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As The Dust Settles – Capitalising on Capitaland (SGX:C31) | Current: $3.26 | Target: $3.96 | Upside: 21.6%
By My Route To Financial Freedom  •  July 27, 2018

Capitaland has long been one of Singaporeans’ beloved stocks. It first listed on 21 November 2000 with a turnover of S$2.9b managing S$17b residential development properties, investment properties, serviced residences and hotels. Fast forward 18 years, today it has become a powerhouse in Asia with S$5b turnover (LTM), managing S$88.8b of assets across 32 countries.

The Situation

With the recent hike in ABSD, Singapore residential developers have undoubtedly been punished in a bid to prevent an oversupply of residential properties being developed in Singapore. Capitaland wasn’t spared either, but the effects of diversification shone brilliantly in the case of Capitaland. Although Capitaland declined ~6%, other developers fared much worse, experiencing 15-20% decline after the announcement was made.

Here we see that Capitaland has over the years worked to build a portfolio to avoid geographical concentration risk from a portfolio that once looked like this:

Had ...

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By My Route To Financial Freedom
Aloysius Lee, co-founder, is currently pursuing a degree in Business at Nanyang Technological University (NTU) and is the President of Investment Interactive Club 17/18. He graduated from Singapore Polytechnic (SP) with a Diploma in Banking and Financial Services. During his course of study, he was awarded the SB Business School Achiever Award, UOB Kay Hian Scholarship and Phillip Futures Prize ...
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