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 due to a $63.1 million internet fx loss and reduced divestment gains. Leaving out the exchange loss, 1H2025 pre-tax revenue would certainly have enhanced by 95.0% on a like-for-like basis. Patmi increased as a result of a reduced tax charge compared to the previous year.
City Developments (CDL) announced a 3.9% rise in Patmi to $91.2 million in 1H2025, for the 6 months to June 30. Revenue rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
As of June 30 the Group kept cash reserves of $1.8 billion and cash and readily available undrawn dedicated bank centers amounting to $3.5 billion. After factoring in reasonable value on investment properties, 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 rate cuts across the various jurisdictions. For 1H2025, the Board has announced a special interim reward of 3.0 cents per average share.
The property development sector continued to be the largest revenue contributor with a 24.3% boost, driven by Singapore projects such as The Myst, Norwood Grand and Union Square Residences, in addition to the divestment of the Ransome’s Wharf site in London’s Battersea area and the sale of the office element of Suzhou Hong Leong City Center in China.
The financial investment properties segment reported steady revenue with a 0.4% boost, supported by greater 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 properties.
Canberra Crescent Residences Singapore
CDL’s NAV since June 30 was $10.10, down seven cents since Dec 31, 2024. Its share price shut at $6.35 on Aug 12, up 24% this year.
The Group’s performance was adversely affected by net forex losses of $63.1 million in 1H2025 compared to a net foreign exchange profit of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have jumped 322.7% to $154.3 million. The depreciation of the US dollar substantially affected the Group, generally due to USD-denominated intercompany loans extended to fund previous US hotel acquisitions and operating resources requirements. This net foreign exchange loss, coupled with weak efficiency from the hotel operations segment, led to this section reporting a loss for 1H2025.
Year-to-date, more than $1.5 billion in contracted divestments has been reached. The expected fulfillment 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 hotel operations segment reported 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 expense pressures and weak performance in key industry such as Singapore and the United States.
The raise in sales and final earnings were steered by developed performance in the real property development section, with full revenue recognition from its completely marketed joint venture (JV) Executive Condominium (EC) venture, Copen Grand, complying with its completion in April 2025, and various other contributing jobs including The Myst, Norwood Grand, and also JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
