OREANDA-NEWS. April 22, 2015. Real Estate Developers are made up of companies that are involved in the following industries – Diversified Real Estate Activities, Real Estate Development, Real Estate Operating Companies, and Real Estate Services as categorised according to the Global Industry Classification Standard (GICS®).

There are 17 billionaire Real Estate Developers listed on the Singapore Exchange (SGX), and they have a combined market capitalisation of almost S\\$100 million. In the year thus far, the 17 stocks averaged 8.6% price gain, with dividends boosting their average total return to 9.0%. They maintain an average dividend yield of 2.1%.

In the year-to-date, the best performers represent a neat mix of regional plays – Sinarmas Land (Indonesia), Wing Tai Holdings (Singapore/Malaysia), Yuexiu Property Company (China), Hongkong Land Holdings (Greater China), and UOL Group (across Asia & Australia). These five companies averaged 19% price gain in the year-to-date, and maintain an average dividend yield of 2.4%.

Recent Financial Performances of the Five Best Performers

On 11 February, Wing Tai Holdings reported that their total revenue for the half year ended 31 December 2014 (“current period”), decreased by 39% to S\\$286.7 million. As noted in the accompanying statement, the Group’s operating profit decreased by 53% to S\\$49.6 million in the current period, largely due to the lower contributions from development properties (click here to view).

On 26 February, UOL Group reported that their revenue for the full year ended increased by \\$302.1 million to \\$1,360.7 million from \\$1,058.6 million in 2013. As noted in the accompanying statement, the increase was mainly from the recognition of property development revenue of 1) \\$220.1 million from the sale of land at Jalan Conlay; and 2) \\$213.5 million from the completion of The Esplanade, Tianjin in 2014 (click here to view).

On 27 February, Sinarmas Land reported that they recorded revenue of \\$828.6 million and EBITDA of \\$451.7 million for the year ended 31 December 2014 (“FY2014”). The Group’s gross profit was lower at \\$597.8 million in tandem with lower revenue. However, the higher selling price, particularly for their residential projects in BSD City and higher sales of land parcels with better profit margin have resulted in an increase in overall gross profit margin from 65.9% in FY2013 to 72.1% (click here to view).

Last month, Yuexiu Property Company reported that their revenue for the year ended 31 December 2014 was approximately RMB15,702 million, an increase of 10.5% comparing with the corresponding period of 2013 (click here to view). In addition, Hongkong Land Holdings also reported that their revenue for the year ended 31st December 2014, increased by 1.04% to US\\$1,876.3 million. As noted in the accompanying statement, the Group’s commercial portfolio produced another strong result with the benefit of higher overall average rents (click here to view).

Details of the 17 billionaire Real Estate Developers are below. Note that stocks in the table are ranked according to market capitalisation.

Company Name SGX Code Mkt Cap S\\$M % Price Change YTD % Change - Dividend Adj. YTD % Change - Dividend Adj. [1 Year] PE (x) % Div Yld
Hongkong Land Holdings H78 24,146 12.6 14.6 14 13.7 2.5
CapitaLand C31 15,531 10 10 17.4 14.6 2.5
Global Logistic Properties MC0 12,874 7.3 7.3 -2 19.2 1.7
City Developments C09 9,566 2.4 2.4 2.1 13.2 1.5
UOL Group U14 6,228 13.6 13.6 28.7 9.1 1.9
Frasers Centrepoint TQ5 5,312 8.6 12.6 20.1 9.6 4.6
United Industrial Corporation U06 4,876 4.5 4.5 9.3 12.3 0.8
Yuexiu Property Company G10 3,733 16.1 16.1 24.7 6.2 4.2
Sinarmas Land A26 2,327 30.8 30.8 37.8 14 0.6
Wheelock Properties (Singapore) M35 2,303 9.4 9.4 6.6 54.6 3.1
GuocoLand F17 2,092 5.9 5.9 -12.1 7.1 2.6
Yanlord Land Group Z25 2,056 1.4 1.4 -9.9 7.2 1.3
Perennial Real Estate Holdings 40S 1,767 3.4 3.4 - - -
Wing Tai Holdings W05 1,577 23.5 23.5 6.7 7.6 2.9
Oxley Holdings 5UX 1,504 -1 -1 -37.6 35.2 0
Fragrance Group F31 1,377 -4.7 -4.2 -5.6 9.1 1
Bukit Sembawang Estates B61 1,336 2.2 2.2 -7.1 12.8 3.1
Average     8.6 9.0 5.8 15.3 2.1

Source: SGX StockFacts. *note that Wilton Resources, which used to be classified under the real estate category, has since changed its business to gold mining.

The five largest capitalised Real Estate Developers – Hongkong Land Holdings, CapitaLand, Global Logistic Properties, City Developments, and UOL Group – have a combined market capitalisation of S\\$68.3 million and make up more than half the total market capitalisation of the 17 billionaire stocks. These five stocks averaged 9.2% price gain in the year-to-date, with dividends boosting their average returns to 9.6%.

Hongkong Land Holdings

Hongkong Land Holdings, together with its subsidiaries, engages in the investment, development, and management of real estate properties in Greater China, Southeast Asia, and internationally. The company operates through two segments, Commercial Property and Residential Property. The company also develops residential properties for sale in Hong Kong, Mainland China, Macau, and Singapore. In addition, it is involved in hotel investment and finance businesses; and providing property consultancy and administration services. The company was founded in 1889 and is based in Hamilton, Bermuda. Hongkong Land Holdings Limited is a subsidiary of Jardine Strategic Holdings Limited.

Hongkong Land Holdings has a market capitalisation of S\\$24.1 billion and the stock trades at a price-to-earnings ratio of 13.7. The five substantial shareholders are Jardine Strategic Holdings Limited, Schroder Investment Management (Singapore) Ltd, Norges Bank Investment Management, The Vanguard Group, Inc. and Invesco Ltd.

The company website is: www.hkland.com

CapitaLand

CapitaLand, an investment holding company, engages in the real estate development, investment in real estate financial products and assets, investment advisory and management services, and management of serviced residences in Singapore, China, other Asia, and Europe and other countries. The company operates through CapitaLand Singapore, CapitaLand China, CapitaMalls Asia, Ascott, and Others segments. The company was formerly known as Pidemco Land Limited and changed its name to CapitaLand Limited in November 2000. CapitaLand Limited was founded in 1989 and is headquartered in Singapore.

CapitaLand has a market capitalisation of S\\$15.5 billion and the stock trades at a price-to-earnings ratio of 14.6. The five substantial shareholders are Temasek Holdings (Private) Limited, BlackRock, Inc., The Vanguard Group, Inc., State Street Global Advisors, Inc. and BNP Paribas Securities Corp, Asset Management Arm.

The company website is: www.capitaland.com

Global Logistic Properties

Global Logistic Properties (GLP) is a developer, owner, and manager of modern logistics facilities. The company’s portfolio spans 28 million square meters across China, Japan, and Brazil. GLP’s customers are manufacturers, retailers, third party logistics companies, and e-commerce companies that cater to domestic consumption. Global Logistic Properties Limited was incorporated in 2007 and is headquartered in Singapore.

Global Logistic Properties has a market capitalisation of S\\$12.9 billion and the stock trades at a price-to-earnings ratio of 19.2. The five substantial shareholders are Recosia Pte. Ltd., Lone Pine Capital LLC, BlackRock, Inc., Norges Bank Investment Management and Fang, Fenglei.

The company website is: www.glprop.com

City Developments

City Developments, through its subsidiaries, engages in the development and investment of real estate properties, and ownership and management of hotels, as well as the provision of hospitality solutions. It develops various types of residential properties; develops and leases commercial properties; and provides technology solutions for the global hospitality industry. The company also operates and owns clubs; offers property management, project management, and consultancy services; and provides information technology and procurement services. City Developments Limited has operations in Asia, Europe, North America, New Zealand, and Australia. The company was founded in 1963 and is headquartered in Singapore, Singapore.

City Developments has a market capitalisation of S\\$9.6 billion and the stock trades at a price-to-earnings ratio of 13.2. The five substantial shareholders are Hong Leong Investment Holdings Pte. Ltd., Aberdeen Asset Management PLC, BNP Paribas, Private & Investment Banking Investments, Euroform (S) Pte. Limited and NIN Investment Holdings Pte Ltd..

The company website is: www.cdl.com.sg

UOL Group

UOL Group Limited, through its subsidiaries, engages in real estate, retail, and hospitality businesses. The company operates and manages hotels and resorts in Singapore, Australia, Vietnam, Malaysia, Myanmar, the People’s Republic of China, the United States, Canada, Japan, Thailand, Indonesia, the Philippines, and India. It also operates restaurants; and manages and operates health and beauty retreats and facilities. In addition, UOL Group involves in the investment, development, and management of various properties, including office, commercial, and residential properties, as well as retail malls and serviced apartments. UOL Group Limited was founded in 1963 and is based in Singapore, Singapore.

UOL Group has a market capitalisation of S\\$6.3 billion and the stock trades at a price-to-earnings ratio of 9.1. The five substantial shareholders are C.Y. Wee & Company Pte. Ltd, Wee Investments Pte Ltd, United Overseas Bank Limited, Schroder Investment Management Limited and Haw Par Corporation Limited.

The company website is: www.uol.com.sg