City Developments - DBS Research 2026-03-02: Powering Up The Recycling Engine

• City Developments (SGX:C09)'s FY25 PATMI grew >2x y-o-y to S$ 630mil, coming in ~22% above our estimate and double of consensus (though it may not have factored in divestment gains). This was driven by strong Singapore development recognition and sizeable divestment gains, partly offset by S$ 155mil in impairments and foreseeable losses for overseas properties.
• - Read this at SGinvestors.io -
• The group also announced a formalised dividend policy with minimum payout ratio of 35% of reported PATMI. Net gearing (including fair value on investment properties) rose to 71% from 69%, attributed to acquisitions including a Shanghai mixed-use site, three Singapore GLS sites and a UK hotel.

Our view:

A good set of results.

• - Read this at SGinvestors.io -
• Following healthy sales at Newport Residence in February, City Developments is planning to launch Lakeside Drive in 3Q26, while it still has three sites remaining in its landbank – Woodlands Drive 17 (EC), Senja Close (EC) and Tanjong Rhu Road.Although landbanking in Singapore continues to be highly competitive, bidding discipline is expected to remain a key focus.
• The group is likely to continue participating in land tenders but without building an overly large pipeline.

Anticipate continued divestments throughout 2026

• Read more at SGinvestors.io.

Tabitha FOO DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-03-02

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