CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The Group’s performance was adversely impacted by net foreign exchange declines of $63.1 million in 1H2025 contrasted to a net foreign exchange profit of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have leapt 322.7% to $154.3 million. The devaluation of the US bill noticeably affected the Group, primarily because of USD-denominated intercompany loans extended to fund previous United States hotels and resort acquisitions and working capital requirements. This net forex loss, coupled with weak performance from the hotel operations section, caused this segment reporting a loss for 1H2025.
Year-to-date, over $1.5 billion in acquired divestments has been accomplished. The anticipated fulfillment 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.
The investment properties segment documented stable revenue with a 0.4% boost, supported by higher payments from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living industry projects in the UK and Japan, countered by lower payments from the Group’s UK commercial properties.
CDL’s NAV since June 30 was $10.10, down seven cents ever since Dec 31, 2024. Its share price shut at $6.35 on Aug 12, up 24% this year.
The hotel operations section reported a pre-tax loss of $84.4 million in 1H2025, largely as a result of a net foreign exchange loss from the depreciation of the USD, inflationary cost stress and weak performance in key industry such as Singapore and the US.
Reduced pre-tax profit of $139.9 million in 1H2025 was mainly as a result of a $63.1 million net foreign exchange loss and lowered divestment gains. Omitting the exchange loss, 1H2025 pre-tax profit would have raised by 95.0% on a like-for-like basis. Patmi rose as a result of a reduced tax cost compared to the past year.
The property development sector stayed the biggest revenue factor with a 24.3% rise, driven by Singapore projects like The Myst, Norwood Grand and Union Square Residences, in addition to the divestment of the Ransome’s Wharf site in London’s Battersea location and the sale of the office component of Suzhou Hong Leong City Center in China.
The growth in return and net profit were generated by developed performance in the property advancement sector, with full earnings acknowledgment from its fully marketed joint venture (JV) Executive Condominium (EC) project, Copen Grand, complying with its finalization in April 2025, and various other contributing jobs consisting of The Myst, Norwood Grand, as well as JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
As of June 30 the Group managed cash reserves of $1.8 billion and cash and available undrawn committed financial institution centers amounting to $3.5 billion. After factoring in reasonable value on investment estates, the Group’s net gearing ratio 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 declared a special acting reward of 3.0 cents per common share.
City Developments (CDL) announced a 3.9% surge in Patmi to $91.2 million in 1H2025, for the six months to June 30. Income rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
