City Developments - RHB Invest 2016-06-03: Inclusion of FTSE EPRA/NAREIT Global Developed Index

CITY DEVELOPMENTS LIMITED C09.SI

City Developments - Inclusion of FTSE EPRA/NAREIT Global Developed Index

FTSE announced its quarterly review for the FTSE EPRA/NAREIT Global Real Estate Index, Asia region yesterday.
Based on the review City Developments (CIT SP, BUY TP: SGD9.35) will be added to the FTSE EPRA/NAREIT Global developed index effective 20 June 2016.
The FTSE EPRA/NAREIT Global Real Estate Index Series is designed to track the performance of listed real estate companies and REITS worldwide.

Recall that we have highlighted earlier in our note (dated 12th May) that there is a 50% chance of CDL being re-included in the index. The news is positive for CDL as the index is widely used as benchmark by Exchange Traded Funds worldwide.
This is in addition to the potential monetisation of its assets via a third participation securities will act as a near-term catalyst for the share price.
CDL is our conviction BUY in the property space with a target price of SGD9.35.

Vijay Natarajan RHB Invest http://www.rhbinvest.com.sg/ 2016-06-03

RHB Invest SGX Stock Analyst Report BUY Maintain BUY 9.35 Same 9.35