- City Developments (SGX:C09)'s 1H24 PATMI of S$87.8mil (+32% y-o-y) was below expectations, forming 31% of our FY24e forecast. The shortfall was due to construction delays, which pushed back the timing of profit recognition of property development projects. The increase in PATMI y-o-y was driven by higher divestment gains as part of City Developments’s capital recycling efforts.
- - Read this at SGinvestors.io -
- City Developments is a proxy for the Singapore residential market and hospitality recovery. City Developments' share price is currently trading at an attractive 59% discount to our RNAV/share of S$12.50.
The Positives
Resilient sales under the property development segment.
- - Read this at SGinvestors.io -
- City Developments plans to launch two projects in 2H24 - Union Square Residences (366 units) and Norwood Grand (348 units).
- To replenish its development landbank, City Developments and its JV partner acquired a GLS site at Zion Road for S$1.1bn or S$1,202 psf ppr in April 2024. Additionally, City Developments has submitted two joint bids for the Jurong Lake District (JLD) master developer site with four other partners.
Hospitality segment continues to improve, albeit with slower growth.
- Read more at SGinvestors.io.
