City Developments Limited (CDL) stock is back in the spotlight on 12 December 2025, as fresh broker commentary and a string of portfolio moves reframe the investment debate around the Singapore developer: value unlocking versus leverage, and asset recycling versus new acquisitions. [1]
CDL shares were indicated higher during Friday’s session, with market watchers pointing to renewed optimism across Singapore property counters after DBS Research raised target prices for several developers—including CDL. [2]
CDL share price today
As of 14:38 on 12 December 2025, CDL was shown at S$7.34, up S$0.13 (+1.80%) on the day, according to SG-focused market tracking. [3]
The prior session context matters too: CDL “ended flat” at around S$7.21 on Thursday (Dec 11) in the same market note that previewed Friday “stocks to watch.” [4]
DBS turns more bullish on Singapore developers
The biggest same-week catalyst for sentiment has been DBS Research’s sector-wide lift in target prices for Singapore developers, driven by a mix of lower interest rates, capital recycling plans, and “rejuvenation” initiatives across balance sheets and portfolios. [5]
For CDL specifically, DBS raised its target price to S$11.80 from S$9.00 and reiterated a “buy” call, while the stock traded around the low S$7.20s at the time of the report—implying substantial upside if the re-rating thesis plays out. [6]
DBS also floated a broader valuation framework for the sector: developers could potentially unlock higher multiples by spinning stabilised assets into REITs or restructuring into stapled security formats, approaches that markets sometimes reward with tighter discounts to asset value. [7]
That theme—closing the long-running “discount to RNAV” (revalued net asset value)—shows up repeatedly in today’s analyst debate around CDL.
The strategy Wall Street and Singapore brokers are circling: capital recycling
Across recent company disclosures and broker notes, CDL’s narrative has shifted from “conglomerate complexity” to active capital recycling: selling mature/non-core assets, using proceeds to reduce leverage, and selectively reinvesting where returns look compelling.
CDL itself has been explicit that capital recycling remains a key strategic focus, citing the sale of Piccadilly Galleria and an ongoing process around Quayside Isle at Sentosa Cove. [8]
In the company’s Q3 operational update (quarter ended 30 September 2025), CDL said it:
- launched the sale of Piccadilly Galleria and completed the divestment on 7 November for S$65.46 million (about S$3,250 psf), and
- initiated an expression-of-interest process for Quayside Isle, stating it is in advanced discussions and negotiations with shortlisted parties following the EOI close. [9]
Analysts have interpreted this as a “do the obvious hard thing” phase: simplify, monetise, then re-rate.
Osaka divestment: JPY 14 billion sale to Blackstone-managed funds
On 25 November 2025, CDL announced (via an indirect wholly-owned subsidiary) an agreement to divest the Bespoke Hotel Osaka Shinsaibashi in Japan for JPY 14 billion (about S$117 million), with completion expected in December 2025. [10]
The company framed the deal as part of its portfolio optimisation push, noting the hotel had been acquired in August 2023 for JPY 8.5 billion, and highlighting strong market recovery in Japan hospitality. [11]
In the same release, CDL pointed to over S$1.8 billion in contracted divestments year-to-date, explicitly linking sales momentum to balance sheet and capital redeployment goals. [12]
London hotel acquisition: why it matters for CDL stock
At first glance, an acquisition can look like the opposite of “deleveraging.” But CDL’s early-December London deal is being positioned as a rare-asset purchase with income yield and redevelopment optionality.
On 2 December 2025, CDL disclosed the acquisition of the 706-room Holiday Inn London Kensington High Street for £280 million (about S$480.2 million), or £396,600 per room. [13]
Key points disclosed by the company and reported by local business media include:
- The asset sits on a 6,356 sqm freehold site in Kensington and Chelsea. [14]
- CDL expects the hotel to generate a running yield above 6%. [15]
- The hotel delivered occupancy above 97% for the nine months to September 2025, and revenue above £39 million for the preceding 12 months. [16]
- CDL highlighted “long-term redevelopment potential” for the site. [17]
Strategically, the acquisition also tightens CDL’s London clustering: the company described the site as directly adjacent to CDL’s Copthorne Tara hotel, and said the purchase expands its Central London portfolio to over 3,000 rooms. [18]
Crucially, CDL also tried to pre-empt the “why buy now?” question by emphasising that divestments have outpaced acquisitions, stating it had secured around S$1.9 billion in contracted divestments year-to-date, while investments in 2025 totalled roughly S$1.7 billion (including Government Land Sales sites and the Holiday Inn acquisition). [19]
Operational update highlights: what CDL said about sales, occupancy, hotels and gearing
For investors trying to anchor the story to operating reality, CDL’s Q3 2025 operational update provides a dense snapshot across its main pillars: property development, investment properties, hotels, and capital structure. [20]
Property development: Q3 slower, nine-months stronger
CDL said that in Q3 2025, the group and its JV associates sold 88 units with total sales value of S$313.2 million, versus 321 units and S$611.1 million in Q3 2024 (a quarter that benefited from a prior-year launch). [21]
For the first nine months of 2025, CDL reported 990 units sold totalling S$2.5 billion, compared with 905 units and S$1.8 billion in the prior-year period—supported by the January launch of The Orie, where 94% (730 units) were sold to date. [22]
CDL also highlighted pipeline-building via GLS land purchases and strong launch-weekend demand at the luxury Zyon Grand JV: 84% (590 units) sold at an average price of S$3,050 psf, plus detail on buyer mix. [23]
Investment properties: Singapore occupancy remains high
On recurring income, CDL reported:
- Singapore office portfolio committed occupancy of 97.3% as of 30 Sep 2025, versus an island-wide rate of 88.8% cited from URA statistics in its update. [24]
- Retail committed occupancy of 96.9% versus an island-wide 93.1%, with City Square Mall at 98% after completing an asset enhancement initiative earlier in 2025. [25]
- Pre-commitment at Union Square Central office at about 52% (completion targeted in 2028). [26]
Internationally, the company pointed to improving leasing in parts of the UK commercial portfolio, resilient occupancy at Phuket’s Jungceylon with positive rental reversion, and continued softness in China office occupancy. [27]
Hotels: Asia softer, Europe stronger, and events matter
CDL reported global hotel RevPAR (revenue per available room) for 9M 2025 dipped 0.3% to $165.8, mainly due to weaker performance in Asia. [28]
The company attributed Singapore’s RevPAR decline in part to a high base of major events in the prior year and the timing shift of the Formula 1 Singapore Grand Prix from Q3 last year to Q4 this year—an unusually concrete example of how “event calendars” show up in financials. [29]
In its outlook section, CDL explicitly flagged major Singapore events in Q4 2025, including F1 and a Blackpink concert, as supportive of domestic inflows and hotel performance. [30]
Balance sheet: gearing remains elevated, but liquidity is emphasised
CDL reported net gearing (after factoring in fair value on investment properties) at 69% as of 30 Sep 2025, and highlighted an interest cover of 4.0 times plus strong liquidity. [31]
The update also cited cash reserves of S$2.5 billion and S$4.3 billion of cash and available undrawn committed bank facilities. [32]
That leverage point is a recurring hinge in broker ratings: it’s a reason bulls think monetisation can unlock value, and a reason skeptics stay cautious until gearing trends down more decisively.
Analyst forecasts and target prices: a wide spread, and it’s telling
If you want the market’s “range of realities” for CDL stock, look at the spread of broker targets from late November through mid-December.
Here are the major calls highlighted in publicly available reporting and brokerage summaries:
- DBS Research: target price S$11.80 (raised from S$9.00), buy call. [33]
- RHB: upgraded to buy from neutral; target price S$8.50 (raised from S$4.90). [34]
- OCBC Investment Research:hold with fair value/target S$7.49 (raised from S$6.87 in cited reporting). [35]
- Citi Research: cited as having one of the higher targets at S$9.01 with a buy call (as referenced in a broker roundup). [36]
- CGS International: maintained an add call with target S$8.97 (as referenced in the same roundup). [37]
- Phillip Securities Research via POEMS:accumulate, target price S$8.34, framing CDL at a material discount to RNAV and calling out divestment momentum; it also suggested a special dividend at FY2025 results could be likely, supported by divestment proceeds. [38]
- JP Morgan: cited with a December 2026 price target of S$8.20, using a discount-to-revalued-NAV approach and tying upside to continued asset sales momentum. [39]
Two notable patterns emerge:
The bull thesis (DBS, Citi, CGS, RHB at its upgraded stance) leans heavily on:
- lower rates improving affordability and valuations,
- divestments tightening the RNAV discount, and
- renewed investor willingness to pay for “simplification + dividends.” [40]
The cautious thesis (OCBC’s hold posture) focuses more on:
- higher gearing versus longer-term targets,
- macro uncertainty, and
- the market’s sensitivity to execution and governance optics. [41]
Dividend signals: what’s confirmed, and what’s speculation
One confirmed data point: CDL declared a tax-exempt special interim ordinary dividend of SGD 0.03 per share (interim, FY end 31/12/2025), with an ex-date of 19 Aug 2025 and pay date of 5 Sep 2025, according to SGX filing details. [42]
What’s not confirmed (but increasingly discussed): the possibility of another special dividend tied to the magnitude of divestment gains and proceeds. DBS analysts explicitly raised “special dividend could be on the cards,” and Phillip Securities Research (via POEMS) similarly flagged a special dividend at FY2025 results as “likely,” citing divestment proceeds. [43]
Investors should treat those as analyst expectations, not company guidance—until CDL says it.
What could move City Developments Limited stock next
From the current newsflow, CDL’s next share-price catalysts look less like “one big earnings beat” and more like a checklist of execution milestones:
- Completion of announced divestments, including the Osaka hotel sale slated for December 2025. [44]
- Any confirmed outcome for Quayside Isle, which CDL said is already in advanced negotiation stages. [45]
- Investor response to the London Holiday Inn acquisition, especially whether the market buys CDL’s “rare freehold + >6% yield + optionality” framing. [46]
- Evidence that gearing trends down, building confidence that capital recycling is translating into balance sheet improvement. [47]
- FY2025 results and dividend decisions, including whether a further special dividend materialises. [48]
- Singapore residential launch momentum, where CDL’s own Q3 update highlighted strong demand for well-located projects and pointed to easing rates as supportive. [49]
Risks investors are still pricing in
Even with the recent upgrades, CDL remains a story where risks are part of the valuation:
- Leverage and refinancing sensitivity: CDL’s net gearing was reported at 69% as of 30 Sep 2025. That’s workable if rates ease and asset sales continue, but it leaves less margin for error if markets tighten again. [50]
- Execution risk on asset monetisation: Divestments can slip, buyers can re-trade, and sale gains are not always repeatable at scale. [51]
- Geographic mix: CDL has meaningful exposure across Singapore, the UK/Europe, parts of Asia, and China—where the company itself cited softer office occupancy in its China portfolio. [52]
- Governance optics: More than one broker note still references earlier governance concerns as something investors continue monitoring. [53]
Bottom line for Dec 12: CDL is being traded as a re-rating candidate
On 12 December 2025, the CDL stock conversation is less about a single headline and more about whether the market is willing to reward a coherent “re-rating package”:
- sell non-core assets,
- reduce gearing,
- tighten the RNAV discount, and
- raise shareholder returns—all while maintaining enough operating momentum in Singapore residential and stabilised rental income. [54]
DBS’s jump to a S$11.80 target price puts that bet in bold type. But the continued dispersion in targets—from roughly the mid-S$7s to low double digits—shows the market still disagrees on how quickly CDL can translate divestment headlines into a sustainably stronger balance sheet and valuation multiple. [55]
References
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