CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
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 leapt 322.7% to $154.3 million. The depreciation of the US dollar substantially affected the Group, generally because of USD-denominated intercompany loans expanded to fund previous US hotel acquisitions and operating funding requirements. This net forex loss, paired with weak efficiency from the hotel operations sector, led to this sector reporting a loss for 1H2025.
City Developments (CDL) disclosed a 3.9% rise 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.
Reduced pre-tax profit of $139.9 million in 1H2025 was mostly as a result of a $63.1 million net forex loss and lowered divestment acquires. Leaving out the exchange loss, 1H2025 pre-tax revenue would certainly have raised by 95.0% on a like-for-like basis. Patmi rose because of a reduced tax cost contrasted to the former year.
The hotel operations section reported a pre-tax loss of $84.4 million in 1H2025, mostly due to a net foreign exchange loss from the depreciation of the USD, inflationary cost pressures and weak performance in key industry like Singapore and the US.
The property development segment remained the largest revenue factor with a 24.3% boost, driven by Singapore plans such as 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 element of Suzhou Hong Leong City Center in China.
CDL’s NAV as of June 30 was $10.10, down 7 cents since Dec 31, 2024. Its share price closed at $6.35 on Aug 12, up 24% this year.
Year-to-date, more than $1.5 billion in acquired divestments has been accomplished. 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 investment properties segment reported secure income with a 0.4% boost, supported by greater contributions from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living market projects in the UK and Japan, countered by lower contributions from the Group’s UK business estates.
As of June 30 the Group maintained cash reserves of $1.8 billion and cash and available undrawn committed financial institution facilities amounting to $3.5 billion. After factoring in fair worth on investment estates, the Group’s net gearing ratio 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 acting returns of 3.0 cents per regular share.
The increase in income and net profit were driven by developed efficiency in the property advancement section, with full profit recognition from its fully marketed joint venture (JV) Executive Condominium (EC) project, Copen Grand, complying with its finish in April 2025, and other contributing jobs consisting of The Myst, Norwood Grand, as well as JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
