Can the 3 big listed property groups overturn their underperformance?

Singapore

BANKING and property have historically been major sectors of focus for equity investors in Singapore. Over the last five years, however, the share price performance of Singapore's three listed local banks has diverged sharply from that of the three largest listed local developers.

Shareholders of the largest bank by market capitalisation, DBS, have seen their shares roughly double over the five-year period to end-February. Shares of the the largest developer by market cap, CapitaLand, have gained just 8 per cent.

City Developments and UOL Group have also lagged UOB and OCBC in terms of share price performance.

The banks have also been generous with dividends.

For FY2020, the Monetary Authority of Singapore had required the banks to cap their dividend payouts at 60 per cent of what was paid in FY2019 to conserve capital. But prior to this, the banks had been steadily increasing their dividends - with increases ranging from 47 per cent to 105 per cent, between 2016 and 2019. Should dividends of the banks return to 2019 levels, investors will get yields of 4 to 5 per cent bas…