4Q17 is expected to see the completion of P2; while in the UK, the Belgravia and Knightsbridge are scheduled to be completed in 2Q17. Maiden billings from Forest Woods are expected from FY17.
“We expect progressive sales and recognition of these contributions to underpin earnings,” says Lock.
To recap, CityDev reported lower 4Q and FY16 earnings of $243.8 million and $653.2 million respectively.
FY16 hotel profit before tax fell 32% to $115.7 million due to challenging operating conditions, particularly in New York and Singapore, AEI works at selected hotels and pre-opening costs from JW Mariott South Beach.
However, 2017 is off to a more positive start with its global REVPAR rising 4.5% in Jan, says Lock. Millennium & Copthorne is also taking steps to increase revenue and profit across its portfolio.
Meanwhile, CityDev’s balance sheet is strong with net gearing of 16% and management expects to continue to deploy capital, particularly in the core markets of the UK and China.
Shares of CityDev are trading 1 cent lower at $9.65.
