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

  1. Dividend – 3. 5% yield, <30% payout ratio.   
  2. Diversified Holdings –Highly diversified, global holding of real estate assets spanning 30 countries.
  3. Cheap – 0.6x book, 11x earnings
  4. No Withholding Tax – Singapore does not withhold taxes on dividends for US investors (in most situations).

What Could Go Wrong

  1. Low RoE  – In high single digits for most of last decade.
  2. High China Exposure – 44% of revenues.  
  3. 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.