CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The investment properties segment recorded secure income with a 0.4% increase, sustained by higher payments from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living market projects in the UK and Japan, countered by lower payments from the Group’s UK business estates.
Year-to-date, over $1.5 billion in contracted divestments has been reached. The expected finalization of the sale of the Group’s 50.1% stake 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 forex declines of $63.1 million in 1H2025 compared to a net foreign exchange increase of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have bounced 322.7% to $154.3 million. The devaluation of the US bill substantially affected the Group, generally as a result of USD-denominated intercompany loans extended to fund previous United States accommodation acquisitions and working funding requirements. This net foreign exchange loss, coupled with weak performance from the hotel operations segment, led to this section reporting a loss for 1H2025.
The hotel operations segment reported a pre-tax loss of $84.4 million in 1H2025, mostly as a result of a net foreign exchange loss from the depreciation of the USD, inflationary cost stress and weaker performance in key industry such as Singapore and the United States.
The growth in revenue and net profit were generated by developed performance in the property advancement segment, with full revenue acknowledgment from its fully sold joint venture (JV) Exec Condominium (EC) venture, Copen Grand, following its completion in April 2025, and various other contributing jobs including The Myst, Norwood Grand, as well as JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
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 section remained the largest revenue contributor with a 24.3% boost, steered by Singapore projects including 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 part of Suzhou Hong Leong City Center in China.
CDL’s NAV since 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.
Since June 30 the Group kept cash reserves of $1.8 billion and cash and accessible undrawn dedicated bank centers 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 different jurisdictions. For 1H2025, the Board has announced a special interim reward of 3.0 cents per normal share.
Lesser pre-tax earnings of $139.9 million in 1H2025 was mainly as a result of a $63.1 million internet forex loss and minimized divestment gains. Omitting the exchange loss, 1H2025 pre-tax earnings would have raised by 95.0% on a like-for-like basis. Patmi rose as a result of a lower tax fee contrasted to the former year.
