CapitaLand starting to reap investment payoffs: Barclays

$20bn investments over past three years are propelling stronger equity returns.

Here's more from Barclays:

CAPL in “harvest” mode; contrarian view on Singapore office: We expect CAPL to reverse its three-year share price underperformance on: 1) improving ROEs as its S$20bn investments over the past three years begin to pay off; 2) policy moratorium, improved sales and prices in China (41% of RNAV); and 3) its relatively inexpensive trading metrics – at 10-31% below book and RNAV, the cheapest among the large cap Singapore developers. We see light at the end of the tunnel for office as rental declines have bottomed and we expect below-average new supply in the prime CBD area until 2016.