Latest news with #CapitaLandInvestmentLimited
Yahoo
3 days ago
- Business
- Yahoo
Get Smart: REITs for the Long Term
It's not been an easy ride for REITs over the past five years. First, there was the pandemic in 2020 which forced malls and offices to impose movement control measures. Then, just as things were looking up in 2022, the sector was hit with higher interest rates. Amid all the challenges, it's easy to forget a simple fact: REITs are built to provide income to unitholders like you and me. And when things get messy, it's useful to return to the core principles. REITs are bundles of rental-generation real estate assets that are packaged together and traded on an exchange. Their requirement to pay out a distribution that is at least 90% of their net profit makes them ideal for income-seeking investors. If you wish to rely on a steady stream of dividends that help you to augment your earned income, REITs are the perfect asset class for you. You can treat it as a long-term bond-like instrument that distributes regular income from a recurring rental income stream. It's easy to forget this simple fact amid the noise. But one thing's for sure – all of them are continuing to pay out distributions to their unitholders. At a recent event, my colleague Chin was one of the speakers invited to share his thoughts. He made three very good points about buying REITs that I am happy to share with all of you. Because we cannot control the external environment, we should, instead, stick to what we can control. And we can control which REITs we buy, how much of them we purchase, and when we buy them. The idea is to scan through the list of available REITs on the Singapore Exchange and pick those with strong sponsors and solid DPU track records. Strong sponsors include CapitaLand Investment Limited (SGX: 9CI) and Mapletree Investments Pte Ltd. A great example of a REIT with a solid DPU track record is Parkway Life REIT (SGX: C2PU), which has grown its core DPU every year since its IPO in 2007. Next, you can control your risk by sizing your position accordingly. If you feel comfortable with a REIT such as Mapletree Industrial Trust (SGX: ME8U), it can occupy a 5% position within your portfolio. But if you feel wary of it, but still wish to gain some exposure, you can buy either a 0.5% or 1% position. Finally, you can also choose when to buy your REITs so that you space out your purchases. You can choose to set up a system of regular purchases by allocating several hundred dollars a month to buy a choice REIT. Or to wait for a sharp market pullback to increase your stake in REITs that you favour. It's really up to you. The key is to remember that REITs are meant for income, and if you buy enough of the right REIT, then you can secure a useful stream of passive income for life. REITs are at a crossroads now. Singapore REITs are trading at almost a 20% discount to their long-term average valuation. This fact implies that they are cheap because of the poor sentiment surrounding the asset class. But with patience and the right selection, it may be a great opportunity to scoop up REITs for the long term. By doing so, you can enjoy average distribution yields of around 6% to 7% and increase your passive income stream for life. This could be the fastest way to jump from a 'newbie' investor to a seasoned pro. Our beginner's guide shows everything you need to know to buy your first stock and beyond. Click here to download it for free today. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Mapletree Industrial Trust. The post Get Smart: REITs for the Long Term appeared first on The Smart Investor.
Yahoo
3 days ago
- Business
- Yahoo
Keppel's Investor Day 2025: 5 Things Investors Should Note
When it comes to the communication of long-term strategy and plans, nothing beats a company hosting an Investor Day session. Several blue-chip stocks, including Singapore Technologies Engineering (SGX: S63) and CapitaLand Investment Limited (SGX: 9CI), have hosted Investor Day sessions which you can read about here and here, respectively. Next in line is Keppel Ltd (SGX: BN4), which released its Investor Day 2025 slides earlier this week. Keppel's previous Investor Day 2024 was released in August last year, and this update provides the latest financial targets for the asset manager. Here are five aspects of the group's Investor Day that investors should learn about. First off, Keppel is aiming to grow its funds under management (FUM) to S$200 billion by 2030. The group will focus on organic fundraising for its flagship funds while also expanding its European platform through its Aermont Capital acquisition. Keppel will also rely on strategic co-investments with private funds and explore mergers and acquisitions to grow its FUM. Based on a 0.5 percentage point fee to FUM ratio, this means that Keppel could potentially earn up to S$1 billion in asset management fees by 2030. Such fee income is important as it provides a stream of recurring income for the group. Recurring income has risen from just 21% of net profit back in 2021 to 72% of net profit by 2024. Asset management fees have also grown by 25% per annum from 2020 to 2024, growing from S$180 million to S$436 million. Keppel's intermediate FUM target is S$100 billion by 2026, using fundraising across its flagship funds and organic growth from investing well. To achieve the S$200 billion FUM target, Keppel needs to scale its fund investment platforms and seize opportunities in megatrends such as energy transition and digitalisation. In line with its asset-light strategy, Keppel outlined its cumulative asset monetisation objective of hitting S$10 billion to S$12 billion by 2026. S$347 million of assets were monetised for the year-to-date 2025, with another S$550 million of real estate deals in advanced negotiations. Investors should look to the group's legacy offshore and marine (O&M) assets for these divestments. A new fund, Keppel Offshore Infrastructure Fund, was established with a target size of S$4.5 billion. The initial focus of this fund will be to build steady cash flows from bareboat charters. When market conditions improve, Keppel will then sell away individual rigs or portfolios through securitisation, public listing, or a trade sale. Moving on to Keppel's Infrastructure division, the division targets to double the capacity of its integrated power business to 3 GW by 2030. There are also more than S$11 billion of project pipelines that the group is pursuing in areas such as operations and maintenance for waste-to-energy plants. The idea is to increase the flow of recurring income, as 66% of the division's power capacity is already contracted for three years or more. Infrastructure is Keppel's largest earnings contributor, with its profit growing nearly fivefold since 2021 to S$673 million in 2024. Keppel is also looking at decarbonisation and sustainability solutions as another growth engine. Keppel's SUR division will hinge on global trends to accelerate its growth. These include an ageing population, the shift to co-living spaces, rising construction costs, and the emergence of AI. A total of five SUR projects with a combined value of S$1.7 billion have been implemented. In addition, the division also acquired Watermark Retirement Communities in the US and is growing its presence in China. Future fund products may include retail, senior living, or new vehicles; legacy assets will undergo either monetisation or optimisation. The final area that Keppel plans to grow is its data centre portfolio. Global demand for data centres could more than triple by 2030 as more cloud players run large language models for generative AI. Keppel's Connectivity division partnered with Amazon Web Services, run by Amazon (NASDAQ: AMZN), to support the latter's global data centre infrastructure expansion. Accelerated computing and generative AI represent trillion-dollar opportunities that Keppel can leverage to grow its data centre portfolio to cater to these demands. In particular, the Asia-Pacific region should see a 19% per annum growth in data centre supply from 2023 to 2028, showcasing the investment attractiveness of this sector. Keppel plans to deepen its foothold in existing markets, expand into new markets, and pursue merger and acquisition opportunities. In the near term, the group plans to grow its data centre gross power capacity from 650 MW at the end of 2024 to 1.2 GW. Its data centre FUM is targeted to grow from S$10 billion to S$19 billion over the same period, and the division is pursuing a substantial deal pipeline of S$15 billion. Keppel has put forward a grand vision of what it plans to achieve by 2030. Each division has set bold objectives that it will work towards by looking for suitable catalysts and leveraging organic and acquisitive growth. Investors should keep a close eye on Keppel's progress as it executes these initiatives. Over time, they could be rewarded with a higher share price and more dividends should these efforts translate into higher profits and free cash flow. Big Tech is spending hundreds of billions on AI, and the ripple effects are just beginning. Our new investor guide shows how AI is changing the way companies generate revenue, structure their business models, and gain an edge. Even if you already know the major players, this report reveals something far MORE important: The why and how behind their moves, and what it means for your portfolio. Download your free report now. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang does not own shares in any of the companies mentioned. The post Keppel's Investor Day 2025: 5 Things Investors Should Note appeared first on The Smart Investor.
Yahoo
09-04-2025
- Business
- Yahoo
CapitaLand Investment (SGX:9CI) Is Due To Pay A Dividend Of SGD0.12
CapitaLand Investment Limited's (SGX:9CI) investors are due to receive a payment of SGD0.12 per share on 13th of May. Based on this payment, the dividend yield will be 4.8%, which is fairly typical for the industry. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Before making this announcement, the company's dividend was much higher than its earnings. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. The next year is set to see EPS grow by 90.6%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 66% which brings it into quite a comfortable range. Check out our latest analysis for CapitaLand Investment The dividend has been pretty stable looking back, but the company hasn't been paying one for very long. This makes it tough to judge how it would fare through a full economic cycle. The payments haven't really changed that much since 3 years ago. CapitaLand Investment hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Let's not jump to conclusions as things might not be as good as they appear on the surface. CapitaLand Investment's EPS has fallen by approximately 29% per year during the past five years. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. On the bright side, earnings are predicted to gain some ground over the next year, but until this turns into a pattern we wouldn't be feeling too comfortable. In summary, while it is good to see that the dividend hasn't been cut, we think that at current levels the payment isn't particularly sustainable. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. We don't think that this is a great candidate to be an income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for CapitaLand Investment that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
CapitaLand Investment (SGX:9CI) Is Due To Pay A Dividend Of SGD0.12
CapitaLand Investment Limited's (SGX:9CI) investors are due to receive a payment of SGD0.12 per share on 13th of May. Based on this payment, the dividend yield will be 4.8%, which is fairly typical for the industry. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Before making this announcement, the company's dividend was much higher than its earnings. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. The next year is set to see EPS grow by 90.6%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 66% which brings it into quite a comfortable range. Check out our latest analysis for CapitaLand Investment The dividend has been pretty stable looking back, but the company hasn't been paying one for very long. This makes it tough to judge how it would fare through a full economic cycle. The payments haven't really changed that much since 3 years ago. CapitaLand Investment hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Let's not jump to conclusions as things might not be as good as they appear on the surface. CapitaLand Investment's EPS has fallen by approximately 29% per year during the past five years. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. On the bright side, earnings are predicted to gain some ground over the next year, but until this turns into a pattern we wouldn't be feeling too comfortable. In summary, while it is good to see that the dividend hasn't been cut, we think that at current levels the payment isn't particularly sustainable. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. We don't think that this is a great candidate to be an income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for CapitaLand Investment that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
