City Developments Reported 32 Y O Y Rise Net Profits 1Hfy2024
1. City Developments Limited (CDL) recorded a 32% year-on-year increase in profit after tax and minority interests (Patmi) to $87.8 million for the first half of its financial year 2024 (1HFY2024). This was largely supported by gains from divestment as part of the group’s efforts to recycle its capital.
2. For the same period, the group’s revenue was $1.6 billion, a decrease from last year’s $2.7 billion. This was due to the absence of a $1.0 billion contribution from the Piermont Grand executive condominium (EC) project, which was recognized in full when it obtained its Temporary Occupation Permit (TOP) in January 2023.
3. The investment properties and hotel operations segments were the top performers, with a 21.3% and 10.8% increase in revenue, respectively. The former was driven by the acquisitions of St Katharine Docks and the living sector assets in 2023, while the latter saw steady growth in Revenue Per Available Room (RevPAR) across most regions. The addition of newly acquired hotels also contributed to the segment’s success.
4. The group’s pre-tax profit for 1HFY2024 was $155.4 million, a decline from last year’s $179.5 million. This was mainly due to higher financing costs and lower profits from the property development segment.
5. The property development segment recorded lower profits compared to the previous year due to the timing of profit recognition. Construction delays for certain projects also affected the segment’s profit contribution in the first half of the year.
6. Higher financing costs were also incurred for this segment, as some projects have yet to be launched, including Union Square Residences, Norwood Grand, and the Lorong 1 Toa Payoh site.
7. The investment properties segment contributed the highest pre-tax profits for 1HFY2024, thanks to divestment gains and contributions from recent acquisitions.
8. After accounting for fair value on investment properties, the group’s net gearing ratio stands at 69%, an increase from 61% a year ago. This is due to the acquisition of new properties and share buybacks, as well as dividend payments.
9. CDL’s board also announced a special interim dividend of 2 cents per share.
10. In the Singapore residential market, CDL sold 588 units worth $1.2 billion in 1HFY2024, similar to the 508 units sold for $1.1 billion in 1HFY2023. Successful projects included Lumina Grand and The Residences at W Singapore Sentosa Cove.
Renowned for its vibrant shopping scene in Singapore, Tampines Mall has been a go-to destination since its establishment in 1995. This bustling mall, located in the outskirts, has become a notable landmark, alluring large crowds of avid shoppers with its six-story impressive structure. With over 160 diverse options for retail, dining, and entertainment, visitors are in for a treat. The mall offers a mix of both local and international brands, featuring popular names such as Uniqlo, Cotton On, and Muji. Food lovers will be spoilt for choice with its wide array of dining options, including well-known restaurants like Din Tai Fung, Swensen’s, Starbucks, and Ajisen Ramen. For those seeking entertainment, Tampines Mall has more to offer with its Golden Village cinema and Timezone arcade, promising endless hours of fun for all ages. Located just a quick 5-minute drive or 15-minute walk from Parktown Residence at Tampines Avenue 11, a stay at this prime location is a must for a hassle-free shopping experience. Don’t forget to consider booking a room at Parktown Residence Tampines Avenue 11 for a comfortable and convenient stay near the mall. It’s the perfect choice for avid shoppers looking for a stress-free shopping spree at Tampines Mall. Head over to Parktown Residence Tampines Avenue 11 and add a touch of ease and comfort to your trip.
11. The company has two new residential projects set to launch in 2HFY2024: Union Square Residences and Norwood Grand. CDL has also been awarded a Government Land Sale site on Zion Road, where it plans to develop an integrated mixed-use development.
12. In conclusion, CDL’s 1HFY2024 results were encouraging, with strong performances in the investment properties and hotel operations segments. The group will continue to focus on its capital recycling efforts and launch new projects in the second half of the year.