- City Developments (SGX:C09)'s 1H23 earnings were disappointing as the hospitality arm’s recovery was dragged by higher financing costs and lower development margins. We expect a better 2H23 on contributions from new hotel acquisitions, stronger hospitality performance, and higher contributions from the Singapore residential segment.
- - Read this at SGinvestors.io -
- Rerating catalysts: Unlocking value via asset divestments and potential spin-offs into private funds/REITs that will lift ROE.
Singapore residential property portfolio remains resilient.
- Despite the recent set of additional property cooling measures, its latest launch, The Myst, saw a decent 32% of total 132 units sold at a ASP of S$2,057psf.
- - Read this at SGinvestors.io -
- The next launch likely will be the Bukit Batok West Avenue executive condominiums (512 units) for which we expect to see strong demand.
- City Developments had earlier deferred the launch of Newport Residences (former Fuji Xerox Towers) that is part of a 45-storey mixed-use development, Newport Plaza – we think this may be pushed back to next year amid the weak sentiment for high-end real estate projects.
Expecting a better 2024 for the fund management business.
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-08-29
Read also RHB's most recent report:
2024-02-29 City Developments - Anticipating More Divestments; BUY.
Previous report by RHB:
2023-12-01 City Developments - Making Slow But Steady Progress.
Price targets by 4 other brokers at City Developments Target Prices.
Listing of research reports at City Developments Analyst Reports.
Relevant links:
City Developments Share Price History,
City Developments Announcements,
City Developments Dividends & Corporate Actions,
City Developments News Articles
