0221 GMT - City Developments' proposed sale of its 50.1% stake in the South Beach asset should be a positive surprise for investors, Citi Research analyst Brandon Lee writes in a note. This is due to the property developer's slower-than-expected pace of divestments in 2024 and the iconic nature of South Beach, Lee says. The company appears to be fully committed to capital recycling--its key focus for this year. Besides unlocking significant value and delivering accretion to net asset value, Citi expects a higher pace of asset monetization. This could lead to lower net gearing and higher dividends, which are key share-price catalysts. Citi maintains the stock's buy rating and target price of S$9.51. Shares are last at S$5.16.(amanda.lee@wsj.com)
(END) Dow Jones Newswires
June 04, 2025 22:21 ET (02:21 GMT)
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