Citigroup cuts target

Brokerage Citigroup has slashed its share price target on listed property investor Capital Properties to $1.22.

The new rating comes after Capital Properties, the subject of a $1.48-a-share takeover bid by AMP Property Portfolio, last week announced plans to reduce its dividend payouts by as much as 60 per cent.

Citigroup said the change in dividend policy and the potential closure of AMP's bid posed a "significant downward risk" to the share price.