0327 GMT - City Developments looks set to gain from the large Fed rate cut due to its relatively high gearing and low debt hedge position among developers, RHB Singapore research analyst Vijay Natarajan writes in a note. The real-estate company's financing cost burden may begin easing in 2025 from the rate-cut outlook, the analyst says. City Developments has a total of S$12.1 billion of debt, 25% of which is due for refinancing by 1H 2025, the analyst adds. Based on RHB's preliminary sensitivity analysis, the Fed's 50bp cut will likely lead to a roughly 7% reduction in City Developments' overall finance costs. RHB maintains the stock's buy rating and target price of S$7.30. Shares are up 0.6% at S$5.34. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
September 25, 2024 23:27 ET (03:27 GMT)
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