Singapore, Jan 7, 2026, 15:16 SGT — Regular session
- CDL shares rise 3.8% to S$8.71 in afternoon trade
- JPMorgan lifts its target to S$10.75; RHB raises its target to S$9.50
- Brokers point to asset sales and the prospect of a “strategic review”
Shares of City Developments Ltd (CDL) rose 3.8% on Wednesday after The Edge Singapore reported that JPMorgan lifted its target price and said the Singapore developer still trades about 20% below book value, an accounting measure of net assets. CDL was up S$0.32 at S$8.71 by 3:08 p.m. Singapore time; JPMorgan’s S$10.75 target implies roughly 23% upside, while RHB Bank Singapore on Monday raised its target to S$9.50.
Asset monetisation — selling properties to raise cash — has become a key theme for Singapore developers as investors look for ways to boost returns. RHB analyst Vijay Natarajan said the pickup in disposals was “the right strategy that addresses market concerns of high debt load and sub-par ROE”, or return on equity.
In its latest operational update, CDL said its net gearing — a leverage measure that compares net debt with equity — stood at 69% as of Sept. 30, 2025, and its interest cover was 4.0 times. The company reported S$2.5 billion in cash and total liquidity of S$4.3 billion, while residential sales for the first nine months totalled S$2.5 billion.
Targets on CDL remain wide. Four research houses tracked by SGinvestors put fair value between S$8.34 and S$11.80, with a median of S$8.50 — slightly below Wednesday’s price — and an average of S$9.29.
CDL said in December it agreed to sell Quayside Isle @ Sentosa Cove for S$97.3 million, about 47% above the asset’s book value, and expects to complete the deal in the first quarter of 2026. Group CEO Sherman Kwek said it was “timely to crystallise the value created”, and the company said the sale implied a 2.6% cap rate — the annual property income as a share of the purchase price.
The Straits Times Index was up 0.11% on Wednesday.
Still, a strategic review is not guaranteed, and further asset sales may take longer or fetch lower prices if buyer demand cools. A fresh rise in borrowing costs would also test CDL’s ability to reduce leverage without denting development margins.
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