CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
Lesser pre-tax earnings of $139.9 million in 1H2025 was mainly as a result of a $63.1 million net fx loss and reduced divestment gains. Excluding the exchange loss, 1H2025 pre-tax revenue would certainly have boosted by 95.0% on a like-for-like basis. Patmi increased as a result of a reduced tax cost contrasted to the former year.
City Developments (CDL) released a 3.9% surge in Patmi to $91.2 million in 1H2025, for the six months to June 30. Revenue rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
The property development segment continued to be the largest revenue factor with a 24.3% boost, generated 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 location and the sale of the office part of Suzhou Hong Leong City Center in China.
The financial investment properties segment documented steady earnings with a 0.4% increase, supported by greater payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living market projects in the UK and Japan, offset by lower payments from the Group’s UK commercial estates.
CDL’s NAV as of June 30 was $10.10, down 7 cents since Dec 31, 2024. Its share price closed at $6.35 on Aug 12, up 24% this year.
The rise in return and final profit were driven by improved performance in the real property growth section, with complete profit recognition from its totally sold joint venture (JV) Executive Condo (EC) venture, Copen Grand, complying with its finish in April 2025, and various other contributing projects consisting of The Myst, Norwood Grand, and also JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
The Group’s performance was adversely influenced by net foreign exchange declines of $63.1 million in 1H2025 contrasted to a net forex increase of $51.3 million in 1H2024. Excluding these exchange effects, the Group’s Patmi would have bounced 322.7% to $154.3 million. The depreciation of the US bill noticeably influenced the Group, generally due to USD-denominated intercompany loans expanded to fund previous US accommodation purchases and operating funding requirements. This net foreign exchange loss, coupled with weak performance from the hotel operations section, led to this sector reporting a loss for 1H2025.
The hotel operations section disclosed a pre-tax loss of $84.4 million in 1H2025, largely because of a net foreign exchange loss from the depreciation of the USD, inflationary cost stress and weak efficiency in key industry including Singapore and the United States.
Since June 30 the Group kept cash reserves of $1.8 billion and cash and accessible undrawn committed financial institution facilities amounting to $3.5 billion. After factoring in fair value on investment properties, 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 rate cuts across the different jurisdictions. For 1H2025, the Board has declared a special acting reward of 3.0 cents per ordinary share.
Year-to-date, over $1.5 billion in contracted divestments has been reached. The anticipated completion of the sale of the Group’s 50.1% risk in the South Beach mixed-use development, with divestment gains of $465 million, is in 3Q2025.
