CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The property development segment stayed the biggest revenue contributor with a 24.3% rise, steered by Singapore projects 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.
The Group’s performance was adversely impacted by net foreign exchange losses of $63.1 million in 1H2025 compared to a net forex gain 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 influenced the Group, mainly due to USD-denominated intercompany loans extended to fund previous US hotel procurements and working resources requirements. This net foreign exchange loss, combined with weaker efficiency from the hotel operations segment, led to this section reporting a loss for 1H2025.
As of June 30 the Group maintained cash reserves of $1.8 billion and cash and readily available undrawn dedicated financial institution centers totalling $3.5 billion. After factoring in fair worth on investment estates, 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 rate cuts across the numerous jurisdictions. For 1H2025, the Board has announced a special acting dividend of 3.0 cents per normal share.
Year-to-date, over $1.5 billion in contracted 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 raise in income and final profit were driven by improved efficiency in the real estate advancement sector, with full earnings acknowledgment from its fully offered joint venture (JV) Executive Condo (EC) venture, Copen Grand, following its finalization in April 2025, and various other contributing jobs consisting of The Myst, Norwood Grand, as well as JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
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 weak efficiency in key industry like Singapore and the US.
City Developments (CDL) released a 3.9% rise 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.
Reduced pre-tax profit of $139.9 million in 1H2025 was mostly as a result of a $63.1 million net forex loss and decreased divestment gains. Omitting the exchange loss, 1H2025 pre-tax earnings would certainly have enhanced by 95.0% on a like-for-like basis. Patmi increased due to a lower tax cost compared to the former year.
CDL’s NAV as of June 30 was $10.10, down seven cents since Dec 31, 2024. Its share cost closed at $6.35 on Aug 12, up 24% this year.
The investment properties segment documented steady income with a 0.4% increase, sustained by greater payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living industry projects in the UK and Japan, offset by lower payments from the Group’s UK business real properties.
