City Dev: Disappointing results. 3Q rev came in at $805.8m +8.1% yoy -17.7% qoq, net profit at $132.1m -32.4% yoy -40.2% qoq. Fall in profit was attributed to timing of development profits, foreign exchange and mark-to-market losses. Increased contributions from current project were offset by fall in rental properties after disposing The Corporate Office and The Corporate Buildings in 1H11. Co’s office portfolio continued to have an occupancy rate of 93.5%.
Net gearing at 21% which allows co to take advantage of opportunity if land prices moderate.
New launches for City Dev include The Palette (892 units in Pasir Ris) at est ASP $870 psf this month.
Deutsche maintains Sell with TP$8.83. BNP maintains Buy with TP$13.00
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