City Developments' Three-Year Divestment Target Suggests Aggressive Deal Pace
Dow Jones
Sep 29
0618 GMT - City Developments' three-year divestment target suggests an aggressive pace of deals, CGS International's Raymond Yap and Tan Jie Hui say in a note. The goal to divest of 6 billion Singapore dollars of assets implies an average rate of S$2 billion annually and matches the property company's 2025 record, they note. The company also said it could exceed its divestment target and aim of S$1 billion in profit after tax and minority interests from disposal gains, they add. CDL's goal to double its funds under management could be a key enabler of its divestment target, the analysts say. CGSI reiterates its add rating on CDL, noting that its portfolio reconfiguration and disposal gains could be share-price catalysts. CGSI retains its S$12.11 target price. Shares drop 1.7% to S$7.46.
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