With a historic landmark of 5.4 million sq ft, City Developments Ltd (CDL) has the highest exposure to the Singapore residential market, according to Bank of America Merill Lynch.
Meanwhile, Fraser & Neave and UOL have the highest mass-market residential exposure, with 1.81 million sq ft and 0.76 million sq ft respectively. As for the high-end market, Wing Tai and OUE have the greatest exposure at 68 percent (0.67 million sq ft) unsold GFA and 100 percent (0.39 million sq ft) respectively.
Similarly, CapitaLand (0.88 million sq ft) and CDL (1.94 million sq ft) also have large landbanks in the high-end segment.
The highest RNAV exposure to Singapore’s residential market belong to Wing Tai and CDL, while CapitaLand and Fraser & Neave have minimal exposure.
“We have reduced our RNAV for CapitaLand from S$3.93 to S$3.58/shr. Our new PO of S$2.50 per share is based on a 30 percent discount to RNAV,” said BofA Merill Lynch, adding that the changes to the RNAV resulted from adjustments to their Singapore residential forecasts.
For Keppel Land, the RNAV has been reduced to S$3.54 per share from S$3.62 per share. “Our new PO of S$2.30 per share is based on a 35 percent discount to RNAV,” it added.
Furthermore, CDL’s RNAV has also been reduced from S$10.06 per share to S$8.83 per share. The new PO of S$7.50 per share is based on a 15 percent discount to RNAV.
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