City Developments stock faces weaker H2 after deal delays

Published on 11/13/2026 at 20:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

City Developments stock faces a weaker second half after asset sales slipped into 2027. Potential impairments and currency losses add pressure.

Weaker outlook, resilient operations

Delayed capital-recycling transactions, foreign-exchange losses and potential impairments are expected to weigh on second-half 2026 performance.
Singapore residential sales and hotel revenue per available room improved during the first nine months.
City Developments targets SGD 6 billion in divestments and net gearing of 55% by fiscal 2029.

City Dev, SG1R89002252, Illustration mit AI erstellt.

City Developments expects a significantly weaker second-half performance for 2026 after some planned asset sales were pushed into 2027. The Business Times reported the warning on Wednesday, November 11, citing the group's third-quarter business update.

The delayed capital-recycling transactions create a difficult comparison with the second half of 2025, when City Developments recorded a SGD 473.1 million gain from selling its interest in South Beach Consortium. The company also cited adverse foreign-exchange movements, particularly the stronger Korean won against the Singapore dollar, and said its property valuations may result in impairment losses.

Capital recycling remains central

City Developments is targeting SGD 6 billion in divestments by fiscal 2029 and plans to reduce net gearing to 55% from 75% at September 30. The group said its interest cover stood at 2.7 times, while cash reserves were SGD 2.1 billion and total liquidity reached SGD 4.8 billion. It said there were no material concerns about meeting near-term debt obligations.

China office properties continued to face difficult market conditions at the end of September. City Developments said it was pursuing divestment and optimisation opportunities for those assets as part of its capital-recycling strategy.

Singapore demand provides support

City Developments and its joint-venture associates sold 124 Singapore residential units worth SGD 322.6 million in the third quarter, compared with 88 units worth SGD 313.2 million a year earlier. For the first nine months, sales reached 476 units worth SGD 1.2 billion.

Global hotel operations also improved, with revenue per available room rising 6.4% year over year to SGD 175.20 in the first nine months. Singapore office and retail portfolios recorded committed occupancies of 97.4% and 97.1%, respectively.

City Developments stock traded at 4.68 euros on Lang & Schwarz at 20:48 CET on Friday, November 13.