City Developments 02 (Nov 16 - Dec 26)

[winston]

CITY DEVELOPMENTS LTD (CIT SP)

Recommendation : BUY
Fair Value : SGD 9.12

CHALLENGING ENVIRONMENT TO PERSIST.

Residential operations in Singapore remain the most resilient
Retail and hotels operations continue to face headwinds
Group liquidity position still sound

City Developments Limited (CDL) is a leading real estate developer with three core business segments, namely Property Development, Hotel Operations and Investment Properties.

It has diversified operations in countries such as Singapore, China, UK and US. Although the impact from the Covid-19 pandemic is apparent, we believe negatives are priced in.

Furthermore, over the medium to longer term, we see opportunities for management to unlock value via the restructuring of its Millennium & Copthorne hotels portfolio, potential spin-off of its UK commercial properties into a new REIT and redevelopment of some of its older commercial properties in Singapore to benefit from the government's CBD Incentive Scheme.

Source: OCBC

[winston]

City Developments (CIT SP)
Approaching The Trough

Singapore residential property development remains a highlight for CDL in its 1Q21
business update.

While the rest of its businesses continue to face near-term challenges, we believe that the trough will be in the 2Q21/3Q21 period.

Over the next six months, one potential share-price catalyst is the company’s IPO of its UK commercial assets.

Maintain BUY. Target price: S$8.50.

Source: UOBKH

https://research.uobkayhian.com/content ... e7fa79264c

[behappyalways]

CDL reports global occupancy of 36.8% and global RevPAR of $44.6 in 1Q business update
https://www.theedgesingapore.com/capita ... ess-update

[behappyalways]

CDL says it’s under 'no pressure' to divest assets after Millennium Hilton Seoul reported to sell for $1.19 bil
https://www.theedgesingapore.com/news/p ... l-reported

[behappyalways]

CDL reported to have filed for $936.6 mil REIT IPO
https://www.theedgesingapore.com/news/i ... l-reit-ipo

[winston]

not vested

Singapore billionaire Kwek family's property dynasty challenged in China

CHONGQING Sincere Yuanchuang Industrial Co, a cash-strapped Chinese developer owned by Singapore's richest property family, may undergo a court-led restructuring after a bankruptcy application was filed against it.

Chongqing Sincere missed payment on a local bond that matured in March, and blamed CDL's delayed decision-making for hurting its ability to improve cash flow.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... d-in-china

[behappyalways]

CDL faces turnaround after China debacle
https://www.theedgesingapore.com/news/c ... na-debacle

[winston]

not vested

CDL pencils 1H21 net loss of up to $35 million, no thanks to the Covid-19 restrictions

by Amala Balakrishner

Its exposure to Sincere Property Group was $117 million as at June 30.

CDL’s hotel portfolio which includes wholly-owned Millennium & Copthorne Hotels - is expected to register an operational loss, no thanks to the periodic lockdowns in numerous cities.

CDL's investment properties were similarly hit by lower footfalls and sustained rental rebates given to its retail tenants.

The company cited Jungceylon mall in Phuket as an affected property due to the shuttering of borders to international travellers.

As at June 30, the group had cash and undrawn committed bank facilities of about $4.4 billion.

Source: The Edge

https://www.theedgesingapore.com/capita ... strictions

[winston]

not vested

CDL reports $32.1 mil loss for 1H21; special interim dividend of 3 cents per share declared

by Atiqah Mokhtar

The net loss is largely due to higher tax expenses following the absence of deferred tax credit of $17.6 million recognised in 1HFY2020 , which was part of the New Zealand government’s Covid-19 Business Continuity Package.

1HFY2021 revenue increased by 11.1% y-o-y to $1.2 billion, boosted by the property development segment, which saw an increase of 35.5% compared with 1HFY2020.

CDL’s hotel operations segment registered a 10.8% y-o-y decline in revenue for the 1HFY2021.

The group registered a pre-tax profit of $9.7 million for the period, down 29.3% y-o-y from $13.8 million in the 1HFY2020, mainly impacted by higher net financing costs, foreign exchange losses and lower divestment gains compared with the previous corresponding period.

In terms of its balance sheet, CDL reported cash reserves of $2.8 billion as of June 30, while cash and available undrawn committed bank facilities totaled $4.4 billion. Net gearing ratio (after factoring in fair value on investment properties) stands at 65%.

Source: The Edge

https://www.theedgesingapore.com/capita ... paign=FREE

[winston]

not vested

Analysts keep 'buy' call on CDL, expect better performance in 2H21

by Atiqah Mokhtar

CDL’s 1HFY2021 earnings largely missed analysts’ estimates on the back of weaker-than-expected hotel operations.

“The tough headline print reflects persistent losses at the hospitality business which had a PBT loss of $143 million (1H2020: $208 million)”.

Source: The Edge

https://www.theedgesingapore.com/capita ... mance-2h21