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.
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: