Elevator Pitch
I assign a "Neutral" rating to City Developments Limited (CDEVY) (CDEVF) [CIT:SP].
City Developments currently trades at 0.71 times P/B, which implies a significant discount to its historical five-year and 10-year P/B multiples of 0.95 times and 1.18 times respectively. The stock also offers a consensus forward FY2020 dividend yield of 2.3%.
The planned U.K. commercial REIT listing will help to narrow City Developments' discount to its net asset value and revalued net asset value, and grow the company's fund management AUM. Apart from its planned REIT listing, the