City Developments 02 (Nov 16 - Dec 26)

[behappyalways]

CityDev ends FY18 with record revenue despite 4Q decline; recommends special 6 cents dividend
https://www.theedgesingapore.com/cityde ... s-dividend

[winston]

not vested

City Developments

With $2.2 billion of pre-sales already locked in from FY18, City Developments will be recognising the sales over the next 2-3 years.

This will create a healthy revenue base for City Developments.

Furthermore, City Developments plans to roll out 2,434 new units in 2019, which will further supplement its revenue.

City Developments has also been executing strategic plans to grow, enhance and transform its asset portfolio and business operations. This is part of its goal to achieve a recurrent income target of $900 million by 2028.

As part of its plan, City Developments secured a mandate to jointly manage a A$300 million office asset in Sydney.

City Developments also acquired the remaining 60 percent stake in Central Mall office tower with plans to explore its redevelopment potential.

With a healthy net debt to equity ratio of 31 percent, CIMB notes that City Developments has deep pockets for new investments to achieve its goal.

BUY, TP $10.66; Current share price $8.93

Source: Aspire

[winston]

not vested

City Developments Limited: 1Q19 results beat our expectations

City Developments Limited (CDL) reported its 1Q19 results which exceeded our expectations.

Revenue declined 29.5% YoY to S$746.2m, but PATMI jumped 133.8% to S$199.6m, forming 37.8% of our FY19 forecast.

This was boosted by the realisation of a S$144.3m pre-tax gain from the divestment of Manulife Centre, which is in connection with the Group’s second Profit Participation Securities (PPS) structure developed in 2015.

During 1Q19, CDL sold 173 residential units in Singapore with sales value of S$516.3m, and 113 residential units and one villa in China with sales value of RMB358.8m (~S$72.0m).

Separately, CDL also announced that it would step up its presence in China with the agreed investment of a ~24% effective stake in Sincere Property Group (Sincere), an established real estate developer in China.

The estimated purchase consideration works out to a total of RMB5.5b (~S$1.1b). Furthermore, CDL has entered into an agreement with Sincere to acquire a 70% stake in Shanghai Hongqiao Sincere Centre (Phase 2), a prime commercial property in the heart of Shanghai’s Hongqiao CBD, for RMB1.2b (~S$247m).

Thereafter, CDL’s geographical presence in China will be expanded from 3 to 20 cities, while its portfolio allocation in China will be bumped up from 9% to 15%.

We will provide more details after the analyst briefing.

Maintain BUY and S$10.68 fair value estimate on CDL.

Source: OCBC

[behappyalways]

CityDev launches another takeover bid for Millennium & Copthorne Hotels with 685 pence per share offer
https://www.theedgesingapore.com/cityde ... hare-offer

[winston]

not vested

City Developments Limited: Could second time be the charm?

City Developments Limited (CDL) has launched a pre-conditional final cash offer of 685 pence per share for the remaining 34.8% stake in Millennium & Copthorne Hotels Plc (M&C) which it does not own.

This represents a premium of 37.0% to M&C’s closing price before the announcement and is also 10.5% higher than the previous cash offer of 620 pence per share which lapsed in Jan 2018.

We believe conditions have changed since that fateful last offer. M&C’s operations have continued to be fraught with challenges.

Furthermore, CDL has managed to secure irrevocable undertakings from a number of key minority shareholders which own ~43.6% of the M&C shares not already owned by CDL.

The maximum cash consideration payable by CDL amounts to GBP776.3m (~S$1.34b) and will be funded via internal cash resources and debt. While we see potential upside to our RNAV valuation, we maintain our BUY rating and S$10.68 fair value estimate on CDL, pending the outcome of this deal.

Maintain BUY with a fair value estimate of S$10.68.

Source: OCBC

[behappyalways]

CityDev posts 26.4% drop in 2Q earnings to $162.4 mil on lower revenue; declares special dividend of 6 cents per share
https://www.theedgesingapore.com/capita ... l-dividend

[behappyalways]

City Developments reports 34% decline in 3Q earnings to $115 mil on impairment losses, lower revenue
https://www.theedgesingapore.com/capita ... sses-lower

[winston]

not vested

City Developments Limited: Positive developments

City Developments Limited’s (CDL) 3Q19 results were in-line with our expectations.

PATMI fell 33.7% YoY to S$115.0m due in part to impairment losses on two hotel assets amounting to S$36.9m and one-off costs of S$24.0m incurred for the privatisation of Millennium & Copthorne (M&C).

Excluding these items, PATMI would instead have declined by 11.4% YoY. CDL has sold 1,130 residential units in Singapore for the 9M19 period, which is an increase of 43.6% YoY.

The total sales value of these units came up to S$2,557.1m, representing an increase of 64%.

Another major development was CDL’s successful privatisation of M&C, which was delisted from the London Stock Exchange on 11 Oct.

The compulsory acquisition of the remaining M&C shares under the Final Offer will be completed on 19 Nov.

Looking ahead, CDL intends to take a holistic review of its hotel operations segment.

After adjustments, we derive an updated fair value of S$12.02 (previously S$10.68). BUY.

Source: OCBC

[behappyalways]

CDL posts 12.5% rise in 4Q earnings to $87.7 mil
https://www.theedgesingapore.com/capita ... gs-877-mil

[behappyalways]

City Dev to acquire 51.01% joint controlling interest in China’s Sincere Property Group for $0.88 bil
https://www.theedgesingapore.com/news/m ... rest-china’s-sincere-property-group-088-bil