Dividends proposed by CapitaLand (2006 – 2010)

CapitaLand released its Summary Report 2010 to its shareholders yesterday.

2006 2007 2008 2009 2010
Net Profit attr to shareholders ($b) $1.01 $2.75 $1.26 $1.05 $1.27
Earnings per share (cents) 36.6 98.6 37.0 26.2 29.9
1st & final dividend (cents) 7.0 8.0 5.5 5.5 6.0
Special dividend (cents) 5.0 7.0 1.5 5.0 0.0
Total dividend (cents) 12.0 15.0 7.0 10.5 6.0
Share price at year end ($) $6.20 $5.90 $2.40 $3.86 * $3.60

* rights issue of 1 for 2 at start of FY2009

Net Profits

2007 was the best year of the 5-year data with net profit after tax of $2.75 billion. Then the global financial crisis struck in 2008 with recession in 2009. The net profit declined to $1.26 billion in 2008 and then to $1.05 billion in 2009. There is strong economic growth of 14.5 per cent for Singapore and CapitaLand achieved net profit of $1.27 billion last year.

Dividend

For past four years before 2010, special dividends were declared. But no special dividend was proposed for last year’s performance even when its profit was higher than 2009. The total dividend was the lowest at 6 cents, even lower than 2008 (7 cents) when the world faced the worst recession since the Great Depression in the 1930s.

Share Price

Share price was on downward trend since 2006. It was at $6.20 for the year-end of 2006. It then dropped to $5.90 at end 2007. For 2008 year-end, it further declined to a very low $2.40 due mainly to 2008/09 Great Recession. It recovered to $3.86 in 2009. After the rights issue in February 2009, its shares improved over the theoretical ex-rights price of $2.01. In recent days, CapitaLand’s share price took serious beatings with its share price trading at $3.33 as of yesterday.

With the tightening of property market in China beginning last year, CapitaLand suffered from these measures. This is because China is its largest overseas market with assets of 36 per cent of its balance sheet. Singapore is also tightening its residential property market and this is the double whammy faced by CapitaLand.

Total Return

On basis of total return to shareholders, it appears that dividend is low relatively and shareholders cannot hope to see spectacular improvement in share prices in the near term.

Net Tangible Asset

From the perspective of Net Tangible Assets (NTA) per share, the share price was trading slightly higher than NTA per share. NTA per share as at 31 December 2010 was $3.22. The last traded share price was $3.33 (28 March 2011).

See my other post on the comparison between City Developments and CapitaLand dated 20 March 2011.

Copyright © 2011, the author known as LKT in Singapore.

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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2 Responses to Dividends proposed by CapitaLand (2006 – 2010)

  1. Benny Ang says:

    Do you know the Capitaland dividend payout för financial year-end 2011? I cannot fina them on the Company website.

  2. limkimtong says:

    Please refer to my later post for FY2011 results,dated 17 Feb 2012.

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