CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The financial investment properties segment reported stable profits with a 0.4% rise, sustained by higher contributions from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living market projects in the UK and Japan, countered by lower contributions from the Group’s UK business real properties.
Reduced pre-tax revenue of $139.9 million in 1H2025 was generally as a result of a $63.1 million net fx loss and decreased divestment gains. Excluding the exchange loss, 1H2025 pre-tax revenue would have boosted by 95.0% on a like-for-like basis. Patmi rose because of a lower tax fee compared to the past year.
The hotel operations section reported a pre-tax loss of $84.4 million in 1H2025, mostly because of a net forex loss from the depreciation of the USD, inflationary cost stress and weak efficiency in key industry like Singapore and the US.
As of June 30 the Group maintained cash reserves of $1.8 billion and cash and readily available undrawn committed financial institution facilities amounting to $3.5 billion. After factoring in fair worth on investment estates, the Group’s net gearing ratio ranks at 70% (FY 2024: 69%). Average borrowing costs reduced to 4.0% for 1H2025 (FY2024: 4.4%) following price cuts across the various jurisdictions. For 1H2025, the Board has announced a special interim returns of 3.0 cents per regular share.
City Developments (CDL) disclosed a 3.9% rise 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 sector remained the biggest revenue contributor with a 24.3% increase, steered by Singapore plans such as The Myst, Norwood Grand and Union Square Residences, along with the divestment of the Ransome’s Wharf site in London’s Battersea area and the sale of the office part of Suzhou Hong Leong City Center in China.
Year-to-date, around $1.5 billion in acquired divestments has been achieved. 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 Group’s performance was adversely impacted by net foreign exchange declines of $63.1 million in 1H2025 contrasted to a net foreign exchange gain of $51.3 million in 1H2024. Excluding these exchange effects, the Group’s Patmi would have bounced 322.7% to $154.3 million. The devaluation of the US bill substantially influenced the Group, primarily as a result of USD-denominated intercompany loans extended to fund previous US accommodation purchases and working funding requirements. This net foreign exchange loss, paired with weak efficiency from the hotel operations section, caused this sector reporting a loss for 1H2025.
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.
The growth in revenue and net profit were generated by developed performance in the property development segment, with full earnings recognition from its fully offered joint venture (JV) Executive Condo (EC) venture, Copen Grand, following its completion in April 2025, and various other contributing projects consisting of The Myst, Norwood Grand, along with JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
