CLI’s financial statement said the “Group’s policy is to build a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Group monitors its capital using a net debt-to-equity ratio.
JP Morgan analyst Mervin Song has a non-consensus annual dividend forecast for CapitaLand Investment (CLI) of “18 cents a year over the next three years which implies a 6.7% yield with additional share price support via a $350 million p.a. share buyback".
How realistic is this? In FY2024, CLI announced operating Patmi of $510 million, down 10% y-o-y and Patmi of $479 million. Its dividend of 12 cents in FY2024 represented a total payout of $598 million, and a dividend-in-specie of 0.031 CapitaLand Integrated Commercial Trust (SGX:C38U
) unit equivalent to 6 cents per share.
