CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The Group’s performance was adversely influenced by net forex declines of $63.1 million in 1H2025 contrasted to a net forex profit of $51.3 million in 1H2024. Excluding these exchange effects, the Group’s Patmi would have leapt 322.7% to $154.3 million. The devaluation of the US dollar significantly influenced the Group, primarily because of USD-denominated intercompany loans extended to fund previous United States hotels and resort acquisitions and working resources requirements. This net forex loss, coupled with weaker performance from the hotel operations sector, caused this sector reporting a loss for 1H2025.
The hotel operations section reported a pre-tax loss of $84.4 million in 1H2025, largely due to a net foreign exchange decrease from the depreciation of the USD, inflationary expense pressures and weaker performance in key markets such as Singapore and the US.
City Developments (CDL) disclosed a 3.9% increase in Patmi to $91.2 million in 1H2025, for the six months to June 30. Income rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
The increase in income and net earnings were steered by improved performance in the property development sector, with full revenue acknowledgment from its completely sold joint venture (JV) Exec Condominium (EC) venture, Copen Grand, following its finish in April 2025, and various other contributing projects consisting of The Myst, Norwood Grand, as well as JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
Year-to-date, over $1.5 billion in contracted divestments has been obtained. The expected finalization of the sale of the Group’s 50.1% risk in the South Beach mixed-use development, with divestment gains of $465 million, is in 3Q2025.
Reduced pre-tax revenue of $139.9 million in 1H2025 was primarily because of a $63.1 million net foreign exchange loss and minimized divestment acquires. Omitting the exchange loss, 1H2025 pre-tax profit would certainly have increased by 95.0% on a like-for-like basis. Patmi increased due to a lower tax cost compared to the former year.
As of June 30 the Group managed cash reserves of $1.8 billion and cash and readily available undrawn dedicated financial institution facilities totalling $3.5 billion. After factoring in reasonable worth 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 rate cuts across the numerous jurisdictions. For 1H2025, the Board has declared a special interim reward of 3.0 cents per common share.
The property development sector continued to be the largest revenue contributor with a 24.3% rise, steered by Singapore plans including The Myst, Norwood Grand and Union Square Residences, in addition to 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.
CDL’s NAV since June 30 was $10.10, down seven cents since Dec 31, 2024. Its share rate closed at $6.35 on Aug 12, up 24% this year.
The financial investment properties segment recorded secure revenue with a 0.4% rise, supported by greater contributions from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living industry projects in the UK and Japan, offset by lower contributions from the Group’s UK commercial estates.
