CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
As of June 30 the Group managed cash reserves of $1.8 billion and cash and available undrawn committed financial institution centers amounting to $3.5 billion. After factoring in fair worth on investment properties, the Group’s net gearing proportion stands 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 acting dividend of 3.0 cents per ordinary share.
The property development sector stayed the largest revenue contributor with a 24.3% boost, generated by Singapore projects like The Myst, Norwood Grand and Union Square Residences, along with the divestment of the Ransome’s Wharf website in London’s Battersea location and the sale of the office part of Suzhou Hong Leong City Center in China.
City Developments (CDL) announced 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.
The Group’s performance was adversely influenced by net forex 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 leapt 322.7% to $154.3 million. The depreciation of the US dollar noticeably impacted the Group, generally as a result of USD-denominated intercompany loans expanded to fund previous US accommodation procurements and operating funding requirements. This net foreign exchange loss, paired with weaker performance from the hotel operations section, led to this segment reporting a loss for 1H2025.
Year-to-date, more than $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 hotel operations segment reported a pre-tax loss of $84.4 million in 1H2025, mostly due to a net forex loss from the depreciation of the USD, inflationary cost stress and weak efficiency in key markets like Singapore and the United States.
The investment properties segment reported stable revenue with a 0.4% boost, sustained by greater payments from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living industry projects in the UK and Japan, offset by lower contributions from the Group’s UK business properties.
Lesser pre-tax profit of $139.9 million in 1H2025 was mostly due to a $63.1 million net foreign exchange loss and minimized divestment gains. Omitting the exchange loss, 1H2025 pre-tax profit would certainly have increased by 95.0% on a like-for-like basis. Patmi rose due to a lower tax fee compared to the previous year.
The rise in return and final earnings were generated by improved performance in the real estate advancement segment, with complete revenue recognition from its fully marketed joint venture (JV) Executive Condo (EC) venture, Copen Grand, complying with its finalization in April 2025, and various other contributing projects consisting of The Myst, Norwood Grand, along with JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
CDL’s NAV since June 30 was $10.10, down 7 cents ever since Dec 31, 2024. Its share cost shut at $6.35 on Aug 12, up 24% this year.
