Ticker: CLLDY, Buy below $5.
CapitaLand Limited (CapitaLand) is one of Asia’s largest diversified real estate groups. Headquartered and listed in Singapore, it owns and manages a global portfolio worth about S$133.3 billion.
Why I Would Buy
- Dividend – 3. 5% yield, <30% payout ratio.
- Diversified Holdings –Highly diversified, global holding of real estate assets spanning 30 countries.
- Cheap – 0.6x book, 11x earnings
- No Withholding Tax – Singapore does not withhold taxes on dividends for US investors (in most situations).
What Could Go Wrong
- Low RoE – In high single digits for most of last decade.
- High China Exposure – 44% of revenues.
- Stock Performance – Relatively flat stock performance over past 5 years.
Disclosure: I am long CLLDY, please read additional disclosures here before taking any action based on this post.