CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The growth in revenue and final profit were driven by developed performance in the property growth segment, with complete profit acknowledgment from its completely sold joint venture (JV) Executive Condominium (EC) venture, Copen Grand, complying with its finalization in April 2025, and various other contributing jobs consisting of The Myst, Norwood Grand, and also JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
Since June 30 the Group managed cash reserves of $1.8 billion and cash and readily available undrawn dedicated financial institution facilities totalling $3.5 billion. After factoring in reasonable value on investment properties, the Group’s net gearing ratio ranks at 70% (FY 2024: 69%). Average borrowing costs reduced to 4.0% for 1H2025 (FY2024: 4.4%) following price cuts across the different jurisdictions. For 1H2025, the Board has declared a special interim reward of 3.0 cents per regular share.
Lower pre-tax earnings of $139.9 million in 1H2025 was mostly as a result of a $63.1 million internet forex loss and reduced divestment acquires. Leaving out the exchange loss, 1H2025 pre-tax revenue would have boosted by 95.0% on a like-for-like basis. Patmi rose because of a reduced tax cost contrasted to the previous year.
The property development sector remained the largest revenue contributor with a 24.3% increase, generated by Singapore plans like The Myst, Norwood Grand and Union Square Residences, along with the divestment of the Ransome’s Wharf site in London’s Battersea location and the sale of the office part of Suzhou Hong Leong City Center in China.
The Group’s performance was adversely affected by net foreign exchange losses of $63.1 million in 1H2025 compared to a net foreign exchange profit of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have bounced 322.7% to $154.3 million. The devaluation of the US dollar substantially affected the Group, generally due to USD-denominated intercompany loans extended to fund previous United States hotels and resort purchases and working capital requirements. This net forex loss, coupled with weak efficiency from the hotel operations section, resulted in this sector reporting a loss for 1H2025.
CDL’s NAV since June 30 was $10.10, down 7 cents ever since Dec 31, 2024. Its share cost shut at $6.35 on Aug 12, up 24% this year.
Year-to-date, around $1.5 billion in contracted divestments has been achieved. The anticipated finalization of the sale of the Group’s 50.1% stake in the South Beach mixed-use development, with divestment gains of $465 million, is in 3Q2025.
The investment properties segment reported secure revenue with a 0.4% boost, sustained by higher payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living field projects in the UK and Japan, countered by lower contributions from the Group’s UK business real properties.
City Developments (CDL) announced a 3.9% rise in Patmi to $91.2 million in 1H2025, for the six months to June 30. Income rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
The hotel operations section disclosed a pre-tax loss of $84.4 million in 1H2025, mostly as a result of a net forex loss from the depreciation of the USD, inflationary expense stress and weak performance in key industry such as Singapore and the US.
