Genting Malaysia could realise RM2.9 billion in gains from sale of Miami property: Maybank

GENTING Malaysia could recognise RM2.9 billion (S$873.1 million) in gains if the sale of its prime waterfront property in Miami goes through, assuming it is sold for US$1 billion, Maybank said on Monday (Mar 27).

On Sunday, Bloomberg reported that the parcel put up for sale by Genting attracted five offers exceeding US$1 billion, citing a broker. The highest bid was just under US$1.5 billion.

In 2011, Genting acquired the property and some nearby real estate for about US$236 million and began marketing late in 2022. The site, which spans 15.5 acres (6.3 ha), was the former home of the Miami Herald newspaper.

Maybank does not expect Genting Malaysia to return proceeds from the sale to shareholders via special dividends.

“Instead, we gather that Genting will fortify its balance sheet to bid for a lucrative downstate casino licence for Resorts World New York City that will allow it to deploy table games,” said Maybank analyst Yin Shao Yang, noting that competitors could deploy investments of up to US$5 billion.

The research team estimated in November 2021 that a downstate casino licence could add around RM0.53 per share to its target price for Genting Malaysia.

SEE ALSO

Genting’s prime Miami property attracts bids topping US$1 billion

Brokers’ take: Maybank upgrades Genting to ‘buy’ on return of Chinese tourists

Brokers’ take: DBS downgrades Genting Singapore to ‘hold’ on limited upside

Genting Singapore H2 net profit more than doubles to S$255.7 million on travel recovery momentum

Brokers’ take: Analysts lift targets for Genting Singapore as China reopens

More

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

It currently has a target price of RM2.97 on Genting Malaysia, representing a potential upside of 14.7 per cent from the counter’s last trading price of RM2.59 at 12.13 pm on Monday. Its shares were up 2 per cent or RM0.05 at the time.

Maybank has maintained its earnings estimates and “buy” recommendation for Genting Malaysia.

Genting Singapore, its mainboard-listed indirect subsidiary which operates Resorts World Sentosa, was trading 0.9 per cent or S$0.093 higher at S$1.10 as at the midday trading break.