Broker Name: CGS International
Date of Report: November 18, 2025
Excerpt from CGS International report.
Report Summary
- City Developments (CIT) reported strong earnings visibility for 3Q25/9M25, driven by robust residential sales, high occupancies in investment properties, and stable hotel operations despite a slight year-on-year dip in global RevPAR.
- Management continues to focus on financial discipline, capital recycling, and sustainable long-term value, while maintaining a stable net gearing and reiterating an “Add” rating with a target price of S\$8.97.
- Singapore residential segment saw significant sales, supported by successful new launches and continued land acquisitions, which enhance future earnings visibility.
- Recurring rental income remains strong due to high occupancy rates in Singapore offices and retail properties, with notable improvements in overseas assets, although China office occupancy lags.
- CIT maintains a solid ESG profile with an A- rating, significant reductions in carbon emissions, and ongoing progress in sustainability initiatives, but no premium/discount is applied to valuations for ESG achievements yet.
- The stock is considered undervalued at 0.71x FY25F P/BV compared to its 10-year average, with potential re-rating catalysts including lower interest rates, quicker asset recycling, and possible special dividends.
- Key risks include a slow global macro environment and property cooling measures in Singapore that could affect demand.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
