CapitaLand stocks beat peers with 28% return this year

The eight Singapore-listed stocks under the enlarged CapitaLand Group have generated higher average returns than their regional and global peers so far this year, while also outpacing broader benchmarks, the Singapore Exchange said yesterday.

They averaged a 3.3 per cent total return in the three months to Wednesday, bringing the average total return to 28.2 per cent for the year to date.

This is above the returns of the 100 largest capitalised property stocks in the world and the 100 largest in the Asia-Pacific. Their average return was 20 per cent while the median was 16 per cent.

Each of the eight CapitaLand Group stocks has also outperformed the average and median total returns of the 100 largest capitalised real estate stocks in the region so far this year.

The eight stocks comprise developer CapitaLand, five real estate investment trusts (Reits), one hospitality trust and one business trust.

The new unified entity has a combined market capitalisation of $53 billion. The world's biggest capitalised real estate stock is American Tower Corp at about $135 billion.

In July, CapitaLand proposed to combine Ascott Reit and A-HTrust to make the largest hospitality trust in the Asia-Pacific. The merger is subject to unit holder approval at a meeting yet to be convened.

In terms of distribution per unit (DPU), five out of CapitaLand's seven Reits and trusts recently reported DPU growth.

A version of this article appeared in the print edition of The Straits Times on September 20, 2019, with the headline 'CapitaLand stocks beat peers with 28% return this year'. Print Edition | Subscribe