City Developments - RHB Research 2025-06-06: Taking Steps To Address Rising Debt

• City Developments’ proposed South Beach stake sale is a positive step to address its ballooning debt and crystallise unitholder value. Further active capital recycling – particularly for its low-yielding overseas assets – is needed to improve ROE.
• - Read this at SGinvestors.io -

Proposed South Beach stake sale to IOI Properties.

• City Developments announced the proposed sale of 50.1% stake in South Beach integrated development to its JV partner IOI Properties (currently 49.9% stake) for S$2.75bn (100% basis).
• - Read this at SGinvestors.io -
• The sale price represents a 3% premium to City Developments’ Dec 2024 valuation and we estimate a blended (office, retail, and hotel) exit yield of ~4%. The sale will result in a net gain of S$465m for City Developments and a ~5% uplift to its NTA/share.
• The sale is expected to be completed by 2H25.

Net gearing (pro-forma FY24) post divestment is expected to fall to 103% (from 117%).

• Read more at SGinvestors.io.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Previous report by RHB:
2024-11-26 City Developments - Resilient Singapore Performance; BUY.

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 Dividend Payout Dates & Corporate Actions,
City Developments News