CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The hotel operations section disclosed a pre-tax loss of $84.4 million in 1H2025, mostly because of a net foreign exchange loss from the depreciation of the USD, inflationary expense 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. Revenue rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
The property development sector continued to be the largest revenue factor with a 24.3% increase, generated by Singapore projects such as The Myst, Norwood Grand and Union Square Residences, as well as 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.
Since June 30 the Group managed cash reserves of $1.8 billion and cash and readily available undrawn committed bank facilities amounting to $3.5 billion. After factoring in reasonable value on investment properties, the Group’s net gearing ratio stands 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 declared a special acting returns of 3.0 cents per normal share.
Lower pre-tax earnings of $139.9 million in 1H2025 was mostly due to a $63.1 million internet forex loss and decreased divestment gains. Excluding the exchange loss, 1H2025 pre-tax revenue would have enhanced by 95.0% on a like-for-like basis. Patmi climbed as a result of a reduced tax cost compared to the former year.
The raise in income and final earnings were generated by improved efficiency in the real estate advancement section, with complete revenue recognition from its totally marketed joint venture (JV) Executive Condo (EC) project, Copen Grand, following its finalization in April 2025, and various other contributing jobs consisting of The Myst, Norwood Grand, along with JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
The financial investment properties segment recorded steady revenue with a 0.4% rise, supported by higher payments from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living sector projects in the UK and Japan, countered by lower payments from the Group’s UK business real properties.
The Group’s performance was adversely influenced by net foreign exchange losses of $63.1 million in 1H2025 contrasted to a net foreign exchange profit of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have bounced 322.7% to $154.3 million. The depreciation of the US bill substantially affected the Group, generally as a result of USD-denominated intercompany loans expanded to fund previous United States hotel procurements and working resources requirements. This net forex loss, paired with weak efficiency from the hotel operations sector, led to this section reporting a loss for 1H2025.
CDL’s NAV since June 30 was $10.10, down 7 cents ever since Dec 31, 2024. Its share price shut at $6.35 on Aug 12, up 24% this year.
Year-to-date, more than $1.5 billion in acquired divestments has been achieved. The anticipated 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.
