A year on since the Kwek family feud, CDL is in better shape. So why is its share price falling?
CDL has already staged a substantial recovery from its 2025 trough, but the share price has been sliding since Sept 28.
A year has passed since the Kwek family dispute shook City Developments Limited (CDL), yet the property and hotel conglomerate seems to have regained its footing. The group unveiled a three-year plan in September 2026, targeting $6 billion in divestments across residential, commercial, hospitality, and living sectors, while deploying $5 billion in growth capital.
Despite CDL's stock soaring 56% from its April 2025 trough to around $8, it has since experienced a significant 15% decline, trading near $7 by October 2, 2026. Analysts appreciate the strategic review's positive intent, yet they are left wanting more specifics on execution, milestones, and measurable financial outcomes. The target achievements are seen as positive developments that should improve CDL's capital efficiency, return on equity, and provide investors with measurable financial targets and greater accountability.
However, the stock price continues to slide due to uncertainties surrounding the projected profits and dividends, as well as CDL's China plans. The share price is currently trading below CDL's revalued net asset value (RNAV) and analysts' estimates, with some investors concerned about CDL's balance sheet and the execution risks involved in selling assets and reinvesting the proceeds.
The market remains uncertain about whether the feud between the younger Kwek and his father has truly been resolved, as the senior Kwek's absence from the review unveiling and reluctance to name his successor suggest lingering succession concerns.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
