Brokers' take

Singapore Property | Overweight (maintained) UOB KayHian Research, Mar 28

The Urban Redevelopment Authority (URA) Master Plan 2019 will rejuvenate the central area, allowing office space to be converted to hotel and residential use.

Maintain "overweight". We like developers trading at deep discount to revalued net asset value (RNAV) with healthy balance sheets, such as CapitaLand and City Developments. We like real estate agency PropNex. Office Reits are also key beneficiaries of Master Plan 2019.

The Master Plan 2019 benefits developers with low gearing, and who could actively participate in upcoming auction for land parcels in the central area. "Buy" CapitaLand with manageable net debt/equity at 0.98 times. CityDev also benefits as Republic Plaza and The Arcade could be redeveloped to maximise permissible plot ratio. CityDev has a low net debt/equity of 0.40 times.…