Dear readers, City Developments Limited (CDL) has come under the spotlight once again after a remarkable 35% rally in its stock price from April to July 2025.
Investor sentiment took a sharp positive turn following news that veteran corporate figure Phillip Yeo had stepped down from CDL’s board, sparking speculation that CEO Sherman Kwek will now have greater strategic control over the company’s direction.
This development, combined with strong technical chart patterns and a possible strategic shift away from previous missteps, has reignited interest in CDL stock — and its related counter, CDL Hospitality Trust (CDLHT).
Let us examine the developments in greater depth and assess the investment outlook for both CDL and CDLHT.
STOCK PERFORMANCE SNAPSHOT
On 17 July 2025, CDL’s stock closed at $5.87, slipping slightly by 0.84% after its recent rally. However, this modest pullback came after a surge of 6.3% earlier in the week.
Since hitting a 52-week low of $4.35 on 9 April 2025, the stock has appreciated by an impressive 35% in just over three months.
This price action was supported by a decisive move above the 200-day moving average on 27 June 2025 — a bullish technical signal indicating that institutional momentum may be returning. The last time CDL traded consistently above its 200-day moving average was back in early 2023.
Given this technical breakout, some investors are asking: has CDL finally turned the corner?
WHAT SPARKED THE RALLY?
The catalyst for the recent surge in CDL shares appears to be the announcement of Phillip Yeo’s departure from the board. A respected figure in the corporate and government world, Yeo’s exit is viewed symbolically — representing the conclusion of a period of tension within CDL’s boardroom.
Observers speculate that CEO Sherman Kwek, son of Executive Chairman Kwek Leng Beng, now has greater latitude to execute his strategic vision for the company. Some believe this could lead to more cohesive decision-making and a unified direction — especially after the fractious boardroom disagreements in recent years.
In particular, market watchers have not forgotten the controversial Sincere Property Group acquisition in China, which eventually led to a painful S$1.9 billion full-year loss in 2020, as CDL wrote down its investment. The saga was not just financially costly — it triggered an open dispute within CDL’s board and even led to the departure of seasoned directors.
Now, with Yeo’s departure, investors appear to be hoping for a “reset” — and possibly even a new chapter of strategic clarity.
CDL’S RECOVERY POST-SINCERE INVESTMENT
It would be remiss not to mention the lessons left by the Sincere Property Investment episode. In hindsight, many analysts saw the Chinese property acquisition as ill-timed and poorly executed, made worse by China’s tightening property regulations and macroeconomic headwinds.
CDL had to make the tough but necessary decision to fully write down the Sincere investment and realign its focus on core operations and post-COVID-19 recovery. It also led to a critical re-evaluation of its capital allocation strategy and the composition of its investment portfolio.
While the financial and reputational damage was significant, CDL appears to have internalised the lessons, and recent developments suggest a more cautious and shareholder-aligned approach going forward.
CDL’S FUNDAMENTALS – STILL SOUND
Despite previous setbacks, CDL retains solid fundamentals as one of Singapore’s leading property developers.
As of 1H2025, the company:
- Maintains a strong cash position, with net gearing around 51%, significantly reduced from previous highs.
- Has ongoing development projects in Singapore, Australia, Japan, and the UK — with a healthy pipeline of both residential and commercial properties.
- Owns significant stakes in hotels, retail spaces, and integrated developments globally through its Millennium & Copthorne hotel group.
The recovery in travel and tourism, especially in Asia Pacific and Europe, bodes well for CDL’s hospitality segment, which was battered during the pandemic years. With global events, business conferences, and inbound tourism returning strongly, CDL stands to benefit in the hospitality arena.
CDL HOSPITALITY TRUST: THE SILENT BENEFICIARY
Closely linked to CDL is CDL Hospitality Trust (CDLHT) — a stapled group comprising CDL Hospitality REIT and its business trust. CDLHT owns hotels in Singapore, Australia, UK, Germany, and Maldives, and remains a key component of CDL’s asset-light strategy in hospitality.
After touching a low of $0.73 in April 2025, CDLHT has since rebounded to $0.825 as of 17 July 2025, marking a 13% rally. CDLHT also recently came closer its 200-day moving average, a bullish sign that technical traders and institutions pay close attention to.
The improving fundamentals in global travel, combined with cost rationalisation efforts and higher average daily rates (ADR), have strengthened the REIT’s recovery prospects.
IS CDL NOW A TURNAROUND PLAY?
After years of underperformance and investor disappointment, CDL is increasingly being viewed as a turnaround play in 2025.
Several key factors support this thesis:
- Boardroom Stability – With Phillip Yeo’s departure and apparent harmony between executive and board leadership, CDL may finally have a stable internal environment to focus on execution.
- Technical Breakout – Moving above the 200-day moving average for the first time in nearly two years signals that market sentiment is shifting. Bullish chartists may even target $6.50 to $7.00 as the next technical resistance.
- Asset Recycling Strategy – CDL continues to pursue asset recycling, including monetising non-core properties and overseas investments, to redeploy capital more efficiently.
- Hospitality Recovery – The reopening of borders and resurgence in international tourism benefits both CDL and CDLHT. Hotel occupancy and room rates have improved, especially in gateway cities.
- ESG Focus – CDL has been increasing its commitment to sustainability, earning top scores in several ESG benchmarks. This enhances its attractiveness to institutional and global investors seeking ESG-aligned property plays.
RISKS TO MONITOR
While the recent rally is encouraging, investors should also remain mindful of the risks and uncertainties that CDL still faces:
- China Property Exposure: Though CDL has exited Sincere Property, some residual exposure to China through joint ventures and minority stakes remains. A prolonged slowdown in China’s real estate market could still affect valuations.
- Interest Rate Volatility: Although Singapore and global central banks have begun easing, interest rate volatility remains a risk for capital-intensive developers like CDL. Higher-for-longer rates could dampen refinancing costs or impact property prices.
- Execution Risk: Investors are now expecting smoother execution under Sherman Kwek. Any sign of renewed strategic missteps or governance issues could quickly erase the gains.
- REIT Sector Volatility: CDLHT, like other REITs, remains sensitive to changes in rate expectations and sector sentiment. While tourism is recovering, unexpected shocks (e.g., new pandemics, geopolitical risks) can hurt earnings.
INVESTOR TAKEAWAYS
For existing CDL shareholders, the recent uptrend is a long-awaited relief and perhaps a signal to hold on as the company regains its footing. The improved governance, better technical setup, and recovering hospitality sector provide reasons for cautious optimism.
For new investors, CDL may present a medium- to long-term opportunity, especially if you believe in Singapore’s property sector resilience and Asia-Pacific’s economic recovery. That said, entry at current levels should be made with awareness of past missteps and clear exit strategies.
As for CDLHT, its consistent yield, strong occupancy recovery, and linkage to Singapore’s inbound tourism make it a stable income option for REIT investors — especially given that local fixed income instruments like Singapore Savings Bonds and T-bills are now offering lower-than-expected yields (1.85% for the most recent 6-month T-bill).
CONCLUSION
In summary, City Developments Limited is once again a stock worth watching. After years of underperformance and controversy, the company seems to be regaining investor confidence, both from a technical and governance standpoint. The rally in CDL stock — up 35% since April — is no fluke, and recent developments suggest that a strategic reset may be underway.
Meanwhile, CDL Hospitality Trust, the related counter, also shows encouraging signs of recovery with improving RevPAR, stable distributions, and technical strength.
While it may be too early to declare a full turnaround, there are enough positive indicators to suggest that CDL is now on a stronger footing. Investors who had written off CDL may want to revisit the stock, while long-term holders finally have reasons to smile again.
Let us hope that this new focus from CDL’s leadership translates into tangible and sustainable gains — not just for the company, but for the broader Singapore equity market as well.