CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The hotel operations section reported a pre-tax loss of $84.4 million in 1H2025, largely because of a net foreign exchange loss from the devaluation of the USD, inflationary expense pressures and weaker efficiency in key markets such as Singapore and the United States.
City Developments (CDL) disclosed a 3.9% increase 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 property development segment stayed the largest revenue factor with a 24.3% boost, generated by Singapore projects like 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 element of Suzhou Hong Leong City Center in China.
The growth in return and net profit were driven by developed performance in the property advancement section, with full revenue recognition from its completely marketed joint venture (JV) Executive Condominium (EC) venture, Copen Grand, complying with its finish 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.
As of June 30 the Group maintained cash reserves of $1.8 billion and cash and accessible undrawn committed financial institution centers amounting to $3.5 billion. After factoring in fair worth 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 numerous jurisdictions. For 1H2025, the Board has declared a special acting reward of 3.0 cents per regular share.
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 Group’s performance was adversely impacted 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 Group’s Patmi would have bounced 322.7% to $154.3 million. The devaluation of the US bill noticeably impacted the Group, mainly as a result of USD-denominated intercompany loans expanded to fund previous United States hotels and resort procurements and working capital requirements. This net forex loss, coupled with weak efficiency from the hotel operations sector, led to this segment reporting a loss for 1H2025.
The financial investment properties segment documented secure income with a 0.4% rise, sustained by higher payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living sector projects in the UK and Japan, countered by lower payments from the Group’s UK commercial real properties.
Lesser pre-tax profit of $139.9 million in 1H2025 was mainly due to a $63.1 million internet forex loss and decreased divestment gains. Omitting the exchange loss, 1H2025 pre-tax earnings would have raised by 95.0% on a like-for-like basis. Patmi rose as a result of a reduced tax cost contrasted to the former year.
Year-to-date, over $1.5 billion in obtained divestments has been accomplished. The anticipated 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.
