CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
Reduced pre-tax earnings of $139.9 million in 1H2025 was mostly because of a $63.1 million net forex loss and lowered divestment gains. Omitting the exchange loss, 1H2025 pre-tax revenue would certainly have raised by 95.0% on a like-for-like basis. Patmi increased because of a reduced tax charge contrasted to the previous year.
The hotel operations section disclosed a pre-tax loss of $84.4 million in 1H2025, mostly because of a net foreign exchange decrease from the devaluation of the USD, inflationary cost stress and weaker performance in key markets such as Singapore and the US.
City Developments (CDL) released a 3.9% surge in Patmi to $91.2 million in 1H2025, for the 6 months to June 30. Income rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
CDL’s NAV since June 30 was $10.10, down 7 cents ever since Dec 31, 2024. Its share cost closed at $6.35 on Aug 12, up 24% this year.
Year-to-date, around $1.5 billion in obtained divestments has been accomplished. The anticipated completion 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 affected 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 Group’s Patmi would have bounced 322.7% to $154.3 million. The devaluation of the US bill noticeably impacted the Group, generally due to USD-denominated intercompany loans expanded to fund previous United States hotels and resort purchases and working capital requirements. This net foreign exchange loss, coupled with weak performance from the hotel operations segment, led to this sector reporting a loss for 1H2025.
Since June 30 the Group kept cash reserves of $1.8 billion and cash and readily available undrawn dedicated bank facilities totalling $3.5 billion. After factoring in fair value on investment estates, 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 price cuts across the numerous jurisdictions. For 1H2025, the Board has announced a special acting dividend of 3.0 cents per normal share.
The increase in return and net profit were driven by improved efficiency in the real property growth segment, with full earnings acknowledgment from its totally sold joint venture (JV) Exec Condominium (EC) project, Copen Grand, complying with its finalization in April 2025, and various other contributing jobs consisting of The Myst, Norwood Grand, along with JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
The financial investment properties segment documented secure profits with a 0.4% increase, supported by higher contributions from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living sector projects in the UK and Japan, offset by lower contributions from the Group’s UK business estates.
The property development section remained the biggest revenue factor with a 24.3% boost, driven by Singapore plans including The Myst, Norwood Grand and Union Square Residences, as well as the divestment of the Ransome’s Wharf website in London’s Battersea location and the sale of the office component of Suzhou Hong Leong City Center in China.
