City Developments has reported earnings of $538.5 million for its 2HFY2025, an increase of 374.3% y-oy, bringing full year earnings to $629.7 million, a jump of 212.8%. Revenue for the full year was up 9/7% to $3.59 billion.
The better numbers were driven by "robust" residential sales in Singapore and also "strong" capital recycling gains, specifically its 50.1% stake in South Beach to JV partner IOI Properties. A total of some $2 billion worth of assets have been monetised.
As of Dec 31 2025, it maintained strong cash reserves of $2.1 billion, and cash and undrawn committed credit facilities totalling $4.2 billion.
After factoring in fair value on investment properties, CDL’s net gearing ratio stands at 71%, a slight increase from 69% in FY2024, due to acquisitions completed during the year, such as a mixed-use development site in Shanghai’s Xintiandi, three Singapore Government Land Sales (GLS) sites and a hotel in UK.
CDL says that to "better align" with shareholders’ interests and enhance transparency and clarity of shareholder returns, it is revising its dividend policy to declare ordinary cash dividends at least once a year, with a payout ratio of at least 35% based on reported patmi.
For FY 2025, CDL plans to pay a final dividend of 25 cents per share, which, together with the special interim dividend of 3 cents already paid, will bring the whole of FY2025's payout to 28 cents, representing a dividend payout ratio of 40%.
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In contrast, CDL paid just 10 cents for FY2024.
"The tripling of PATMI underscores the resilience of our core business segments and the tangible progress we have made in sharpening execution, strengthening capital discipline and crystallising value across our portfolio," says executive chairman Kwek Leng Beng.
"With a strong foundation, renewed focus and clear priorities, the group is poised to build on this momentum and continue creating long-term value for our shareholders," he adds.
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Group CEO Sherman Kwek calls FY2025 a "year of reflection", "resilience" and "disciplined execution" amid a challenging landscape.
"To maximise shareholder returns, we are actively reviewing our growth strategy, portfolio structures and capital allocation priorities. We have taken decisive steps to unlock value from mature and non-core assets while selectively redeploying capital to drive growth.
"Looking ahead, the group enters its next phase of growth with renewed vigour," he adds.
CDL shares closed at $9.36 on Feb 26, down 6.02% for the day but up 87.2% in the past year.
