It is always a good feeling to receive a dividend in your bank account.
But it’s an even greater feeling when a stock pays a special dividend that is over and above what it usually doles out.
2022 was a great year for special dividends, with companies such as Sembcorp Industries Ltd (SGX: U96) and ComfortDelGro Corporation Ltd (SGX: C52) paying them out.
With signs of a potential recession coming, investors will look for stocks that provide good visibility and stability.
Blue-chip stocks fit the bill and we highlight three property groups within this list that not only boast strong franchises but also paid out a special dividend last year.
UOL Group Ltd (SGX: U14)
UOL Group is a property and hospitality group with total assets of S$20 billion as of 31 December 2022.
The group has a diversified portfolio of development and investment properties across Asia, Oceania, Europe and the US and its hotel subsidiary owns three reputable brands “Pan Pacific”, “Parkroyal Collection” and “Parkroyal”.
The property giant reported a 28% year on year jump in revenue to S$3.2 billion for 2022.
Fair value gains on UOL Group’s investment properties more than doubled year on year to S$268.2 million.
As a result, net profit surged 60% year on year to S$491.9 million.
In line with the strong results, UOL Group has declared a first and final dividend of S$0.15 and a special dividend of S$0.03, bringing the total dividend for 2022 to S$0.18.
CEO Liam Wee Sin believes that the group’s residential properties are located in good areas which should see healthy demand from homeowners and investors.
Although UOL Group sold 703 Singapore residential units in 2022, less than the 799 sold in 2021, these units generated a slightly higher sales value of S$1.55 billion versus S$1.53 billion in the prior year.
The group purchased a site at Meyer Park in an en-bloc exercise in February 2023 which is estimated to yield around 230 to 250 residential units and will be located near the future Katong Park MRT station.
It also has two Singapore property developments at Pinetree Hill and Watten Estate that are slated for launch in the first and second half of this year, respectively.
UOL Group’s retail portfolio enjoyed a high occupancy rate of 97.8% as of 31 December 2022 as these malls saw a 42.7% year on year jump in footfall for 2022 versus 2021.
Singapore Land Tower is also undergoing an asset enhancement initiative that’s targeted to complete by 2024 while Clifford Centre has received the provisional permit for redevelopment.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a real estate investment manager with S$132 billion of property assets under management (AUM) and S$88 billion of real estate funds under management (FUM) as of 31 December 2022.
CLI reported a mixed set of results for 2022.
Revenue rose 25.4% year on year to S$2.9 billion but net profit plunged by 36.2% year on year to S$861 million.
The group’s net profit was, however, affected by portfolio gains and one-off adjustments.
Core net profit jumped 22.5% year on year to S$609 million.
CLI declared a cash dividend of S$0.12 and a special dividend of 0.057 units of CapitaLand Ascott Trust (SGX: HMN) valued at S$0.059, bringing the total dividend to S$0.179.
The property giant’s capital recycling efforts have bore fruit, with close to 89% of the divestment value of S$3.1 billion retained as FUM.
Fund management fee-related earnings also inched up 5% year on year to S$429 million.
CLI’s lodging division saw a strong recovery with fee-related earnings jumping 36% year on year to S$258 million.
Revenue per available unit also surged by 40% year on year to S$95.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a global real estate company with a network extending to 143 locations in 28 countries and regions.
The group recorded its highest net profit ever of S$1.3 billion as property divestments helped to unlock value.
Revenue also jumped 25.4% year on year for 2022 to S$3.3 billion.
CDL declared a final dividend of S$0.08 and a special dividend of S$0.08, bringing the total annual dividend to S$0.28.
Its Singapore residential launch pipeline remains solid with more than 2,100 units ranging from mass market to high-end projects.
The property behemoth is also redeveloping Newport Plaza, Central Mall and Central Square to realise more value for shareholders.
Similar to CLI, CDL’s hotel operations experienced a strong rebound as travel restrictions eased and more people took to the skies.
Room occupancy improved from 50.2% in 2021 to 64.4% in 2022 with revenue per available room soaring 91% year on year to S$137.9.
Recently, CDL purchased an effective 87.9% stake in Sofitel Brisbane Central for A$177.7 million, helping to expand the group’s footprint in Australia.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
