CityDev reported 4Q14 PATMI of S$384.9m, up 73.4% YoY mostly due to the completion of the structured sale of cash flows in a subsidiary which owns W Singapore. FY14 PATMI cumulates to S$769.6m which forms 123% of our full year forecast and we judge this to be somewhat above expectations due to faster than anticipated progress recognition at its development projects.

FY14 topline increased 17.1% to S$3,763.9m with maiden contributions from D’Nest and Jewel@Buangkok and profits from the EC project Blossom Residences were also wholly recognized upon its TOP over the year. The group is proposing a final dividend of 8.0 S-cents a share and a special final dividend of 4.0 S-cents a share.

We will meet with management later this morning regarding these results and, in the meantime, we put our Sell rating and fair value estimate of S$8.72 under review.

Source: OCBC Research - 16 Feb 2015