Look at it's portfolio. Properties located around train stations convenient for the average Singaporean shopper.
Dividend for the past 12 months is $0.112
Which is a 5.46% dividend for the past year.
It's hard to find stable returns at 5%.
And what's the risk?
All these properties are located at prime areas where people will go to.
Or heartlands where people do their shopping on weekends.
So what's the worst that can happen?
In my opinion, if you think that Singapore will still be around in 30 years, and you are satisfied with a 5% dividend rate, then Capitaland Mall Trust is probably a great investment to add to your portfolio.
Furthermore, in the next 30 years, do you think that Singapore property prices will continue to increase?
So there's also likely capital appreciation on top of the 5% dividend yield.
So personally, I think that markets will go up and down in the long run, but if you think that Singapore will continue to be a stable place in the future, then Capitaland Malls should be a good investment. Even if the market crashes 50%, it's highly unlikely for Capitaland Malls to go bankrupt. Also, it's also highly likely that the price will recover as the market recovers and the property worth will end up being more the price it is now.
So I do think that Capitaland Malls could be the new SPH. Now that SPH is out of favour. A safe secure place to park money for the long term, but returns will not be super. But I think will be good enough for most people.
This is my own opinion. Do not take it as a recommendation to buy, if you want to buy, please do your own research. I do not own Capitaland Malls now, maybe I will in the future. Past performance is not indicative of future performance.
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