City Developments Limited (CityDev) stock plummeted 3.52% in the pre-market session on Friday, following the release of its disappointing Full Year 2024 financial results. The Singapore-based real estate company reported earnings that fell significantly short of analyst expectations, triggering a sell-off among investors.
According to the financial report, CityDev's revenue for FY 2024 came in at S$3.27 billion, down 34% from the previous year and missing analyst estimates by 12%. The company's net income also declined sharply, falling 37% to S$190.8 million. Earnings per share (EPS) stood at S$0.21, a significant drop from S$0.34 in FY 2023 and 35% below analyst projections. The profit margin also contracted, slipping from 6.2% in FY 2023 to 5.8% in FY 2024.
The weak performance has raised concerns among investors about CityDev's growth prospects in the challenging real estate market. While the company's revenue is forecast to grow 9.5% per annum on average over the next three years, this comes against a backdrop of expected flat revenues for the broader Singaporean Real Estate industry. The disappointing results and uncertain outlook have led to a 7.7% decline in CityDev's share price over the past week, culminating in today's sharp pre-market drop.
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