CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The hotel operations segment disclosed a pre-tax loss of $84.4 million in 1H2025, largely due to a net forex decrease from the devaluation of the USD, inflationary expense stress and weaker efficiency in key industry including Singapore and the US.
Year-to-date, around $1.5 billion in obtained divestments has been achieved. The expected 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.
Since June 30 the Group kept cash reserves of $1.8 billion and cash and readily available undrawn dedicated financial institution facilities totalling $3.5 billion. After factoring in fair worth on investment estates, the Group’s net gearing proportion 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 announced a special acting dividend of 3.0 cents per normal share.
The Group’s performance was adversely affected by net forex declines of $63.1 million in 1H2025 contrasted to a net forex profit of $51.3 million in 1H2024. Excluding these exchange effects, the Group’s Patmi would have leapt 322.7% to $154.3 million. The depreciation of the US dollar noticeably influenced the Group, generally because of USD-denominated intercompany loans extended to fund previous United States hotel purchases and working funding requirements. This net forex loss, coupled with weak efficiency from the hotel operations section, caused this sector reporting a loss for 1H2025.
CDL’s NAV since June 30 was $10.10, down 7 cents since Dec 31, 2024. Its share cost closed at $6.35 on Aug 12, up 24% this year.
The property development section continued to be the largest revenue factor with a 24.3% boost, generated by Singapore projects like The Myst, Norwood Grand and Union Square Residences, as well as the divestment of the Ransome’s Wharf website in London’s Battersea location and the sale of the office element of Suzhou Hong Leong City Center in China.
The financial investment properties segment reported stable earnings with a 0.4% increase, supported by greater payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living field projects in the UK and Japan, offset by lower payments from the Group’s UK commercial properties.
City Developments (CDL) announced a 3.9% surge 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.
Reduced pre-tax profit of $139.9 million in 1H2025 was generally due to a $63.1 million net fx loss and reduced divestment gains. Excluding the exchange loss, 1H2025 pre-tax earnings would have increased by 95.0% on a like-for-like basis. Patmi rose because of a lower tax fee compared to the past year.
The growth in sales and net earnings were generated by developed performance in the real estate advancement segment, with full revenue recognition from its completely sold joint venture (JV) Exec Condo (EC) venture, Copen Grand, following its finalization in April 2025, and other contributing projects including The Myst, Norwood Grand, and also JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
