CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The investment properties segment recorded steady revenue with a 0.4% increase, sustained by greater payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living sector projects in the UK and Japan, countered by lower payments from the Group’s UK commercial real properties.
Lower pre-tax earnings of $139.9 million in 1H2025 was mainly as a result of a $63.1 million internet foreign exchange loss and lowered divestment gains. Excluding the exchange loss, 1H2025 pre-tax earnings would have increased by 95.0% on a like-for-like basis. Patmi rose as a result of a reduced tax fee compared to the past year.
The hotel operations segment disclosed a pre-tax loss of $84.4 million in 1H2025, mostly due to a net foreign exchange loss from the devaluation of the USD, inflationary cost stress and weaker performance in key markets including Singapore and the United States.
Year-to-date, more than $1.5 billion in contracted divestments has been accomplished. The expected 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.
City Developments (CDL) released a 3.9% rise 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.
The Group’s performance was adversely influenced by net foreign exchange declines of $63.1 million in 1H2025 contrasted to a net forex 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 bill substantially impacted the Group, mainly because of USD-denominated intercompany loans expanded to fund previous US hotel procurements and working capital requirements. This net forex loss, paired with weak performance from the hotel operations sector, resulted in this section reporting a loss for 1H2025.
CDL’s NAV since June 30 was $10.10, down seven cents since Dec 31, 2024. Its share rate closed at $6.35 on Aug 12, up 24% this year.
Since June 30 the Group managed cash reserves of $1.8 billion and cash and accessible undrawn dedicated bank centers totalling $3.5 billion. After factoring in reasonable worth on investment estates, the Group’s net gearing proportion stands 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 dividend of 3.0 cents per ordinary share.
The property development sector remained the biggest revenue contributor with a 24.3% rise, driven by Singapore projects including The Myst, Norwood Grand and Union Square Residences, as well as the divestment of the Ransome’s Wharf site in London’s Battersea area and the sale of the office element of Suzhou Hong Leong City Center in China.
The increase in return and final earnings were driven by improved performance in the real property growth section, with full profit recognition from its totally marketed joint venture (JV) Exec Condominium (EC) project, Copen Grand, complying with its finish in April 2025, and other contributing jobs consisting of The Myst, Norwood Grand, as well as JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
