• City Developments’ strong 1H18 results led by property development earnings from New Futura, Gramercy Park, China, and Japan. 
• Ten-year target to achieve S$900m recurring EBITDA, partly from fund management’s 10-year AUM target of US$12bn. 
• S$300m office asset acquisition to be announced soon. 
• Higher special interim DPS of 6 Scts vs 4 Scts in 2Q17. 

Upgrade to HOLD; Target Price at S$10.00

We upgrade our rating on City Developments to HOLD from FULLY VALUED at an unchanged Target Price of S$10.00. 

With current share price at S$9.89 with potential upside of 1%, we believe the potential downside risks from the recent implementation of new cooling measures is reflected in its valuation.

Source: DBS Research - 10 Aug 2018