- City Developments (SGX:C09) core earnings missed estimates on lower margins and higher interest costs. FY23 was an active year for acquisitions, particularly in overseas markets, but City Developments expects more divestments in FY24 (target: S$1bn).
- - Read this at SGinvestors.io -
- City Developments's share price has under-performed, but more divestments and recycling to fund platforms could act as re-rating catalysts.
Singapore residential projects continues to sell well.
- City Developments’s new launches last year – Tembusu Grand and The Myst – and the recent launch of executive condominium Lumina Grand have all sold >50% units, while the majority of projects launched before 2023 remain fully sold.
- - Read this at SGinvestors.io -
- Management acknowledged that land costs remain high, but it will continue to selectively bid for sites in upcoming tenders. We expect margins to be tight in the high single-digits to teens – depending on sites.
FY24 divestment target of S$1bn.
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-02-29
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
