What to blame for City Dev's exposure dilemma in Singapore

It just doesn't get any better.

According to CIMB, in Singapore (CDLHT), lower corporate travel and smaller foreign-labour quotas had raised costs and affected occupancy, trends that could persist for some time.

CIMB also noted that CityDev’s residential exposure in Singapore has shrunk since the last upcycle in 2007.

Here's more:

Group revenue in 1Q13 fell 10% yoy, with pretax profit down 14% as hotel earnings collapsed. A combination of factors, including ongoing refurbishment which resulted in the temporary closure of rooms, geopolitical tensions in Korea and harsh weather conditions in Europe and the US, dented occupancy. These should be non-recurring.

Positives continued to come from the residential segment, where the group continued to work down its inventory. Jewel@Buangkok, an EC project at Fernvale Link, was recently launched to strong take-up.