CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The property development section remained the biggest revenue factor with a 24.3% boost, generated by Singapore plans such as The Myst, Norwood Grand and Union Square Residences, in addition to the divestment of the Ransome’s Wharf website in London’s Battersea location and the sale of the office component of Suzhou Hong Leong City Center in China.
As of June 30 the Group managed cash reserves of $1.8 billion and cash and available undrawn dedicated bank facilities totalling $3.5 billion. After factoring in reasonable worth on investment estates, 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 rate cuts across the various jurisdictions. For 1H2025, the Board has announced a special interim reward of 3.0 cents per common share.
The hotel operations segment reported a pre-tax loss of $84.4 million in 1H2025, largely because of a net foreign exchange loss from the devaluation of the USD, inflationary expense stress and weaker efficiency in key markets like Singapore and the United States.
The Group’s performance was adversely influenced by net forex declines of $63.1 million in 1H2025 compared to a net foreign exchange increase of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have leapt 322.7% to $154.3 million. The devaluation of the US dollar noticeably impacted the Group, mainly due to USD-denominated intercompany loans expanded to fund previous US hotels and resort acquisitions and operating funding requirements. This net forex loss, paired with weak performance from the hotel operations sector, resulted in this sector reporting a loss for 1H2025.
The investment properties segment recorded secure revenue with a 0.4% rise, sustained by higher contributions from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living sector projects in the UK and Japan, countered by lower payments from the Group’s UK commercial properties.
Year-to-date, more than $1.5 billion in obtained divestments has been achieved. The anticipated completion 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.
Reduced pre-tax revenue of $139.9 million in 1H2025 was generally as a result of a $63.1 million net forex loss and lowered divestment gains. Omitting the exchange loss, 1H2025 pre-tax profit would have enhanced by 95.0% on a like-for-like basis. Patmi rose due to a reduced tax fee compared to the former year.
City Developments (CDL) released a 3.9% increase in Patmi to $91.2 million in 1H2025, for the 6 months to June 30. Revenue rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
CDL’s NAV since June 30 was $10.10, down 7 cents since Dec 31, 2024. Its share price closed at $6.35 on Aug 12, up 24% this year.
The growth in income and net profit were generated by improved efficiency in the real estate growth section, with full revenue recognition from its completely marketed joint venture (JV) Exec Condo (EC) venture, Copen Grand, following its finalization in April 2025, and various other contributing projects consisting of The Myst, Norwood Grand, along with JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
