Allgreen 2Q earnings of $39.4m (+68% yoy, +13% qoq) came in behind consensus due to the timing of profit recognition. Earnings were underpinned by progressive recognition of development profits from projects such as Cascadia, Holland Residences, One Devonshire and VIVA. The launches in 2Q10 include The Cascadia (53% sold) at Bt Timah and Phase 2e and 2f of Pavilion Park at Bt Batok (>50% sold). Great World City offices, retail and serviced apartments enjoyed higher occupancy and rental rates.
Traders Hotel also saw higher occupancy and better room rates.
Despite slowing sales momentum, locked-in pre-sales of over $1bn offers earnings visibility while stable rental income from its investment property portfolio should continue to support dividends. Its strong pipeline of launch-ready projects also provides it with flexibility in market timing. Stock trading at a deep 44% discount to RNAV, 0.75x P/B & offers 3.6% yield. DB has Buy call with $1.40 TP. Citigroup keeps Sell call with $0.9
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