City Developments (CDL) announced a 3.9% rise in patmi to $91.2 million in 1HFY2025 for the six months to June 30. Revenue rose to $1.7 billion in 1HFY2025, up from $1.6 billion a year ago.
As of June 30, the Group maintained cash reserves of $1.8 billion and cash and available undrawn committed bank facilities totalling $3.5 billion. After factoring in fair value on investment properties, the Group’s net gearing ratio stands at 70% (FY 2024: 69%). Average borrowing costs reduced to 4.0% for 1HFY2025 (FY2024: 4.4%) following rate cuts across the various jurisdictions. For 1HFY2025, the Board has declared a special interim dividend of 3.0 cents per ordinary share.
The increase in revenue and net profit were driven by improved performance in the property development segment, with full profit recognition from its fully sold joint venture (JV) Executive Condominium (EC) project, Copen Grand, following its completion in April 2025, and other contributing projects including The Myst, Norwood Grand, as well as JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
Year-to-date over $1.5 billion in contracted divestments has been achieved. 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.
The Group’s performance was adversely affected by net foreign exchange losses of $63.1 million in 1HFY2025 compared to a net foreign exchange gain of $51.3 million in 1H2024. Excluding these exchange effects, the Group’s patmi would have jumped 322.7% to $154.3 million.
The depreciation of the US dollar significantly impacted the Group, primarily due to USD-denominated intercompany loans extended to fund previous US hotel acquisitions and working capital requirements. This net foreign exchange loss, coupled with weaker performance from the hotel operations segment, resulted in this segment reporting a loss for 1HFY2025.
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Lower pre-tax profit of $139.9 million in 1HFY2025 was mainly due to a $63.1 million net foreign exchange loss and reduced divestment gains. Excluding the exchange loss, 1HFY2025 pre-tax profit would have increased by 95.0% on a like-for-like basis. Patmi rose due to a lower tax charge compared to a year ago.
The property development segment remained the largest revenue contributor with a 24.3% increase, driven by Singapore projects such as 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 component of Suzhou Hong Leong City Center in China.
The investment properties segment recorded stable revenue with a 0.4% increase, supported by higher contributions from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living sector projects in the UK and Japan, offset by lower contributions from the Group’s UK commercial properties.
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The hotel operations segment reported a pre-tax loss of $84.4 million in 1HFY2025, largely due to a net foreign exchange loss from the depreciation of the USD, inflationary cost pressures and weaker performance in key markets such as Singapore and the US.
CDL's NAV as of June 30 was $10.10, down seven cents since Dec 31, 2024. Its share price closed at $6.35 on Aug 12, up 24% this year.
