CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The hotel operations segment reported a pre-tax loss of $84.4 million in 1H2025, largely as a result of 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.
Year-to-date, around $1.5 billion in contracted divestments has been obtained. The anticipated 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.
The raise in income and final profit were steered by improved efficiency in the real property development sector, with complete profit recognition from its totally marketed joint venture (JV) Exec Condo (EC) venture, Copen Grand, complying with its finalization in April 2025, and other contributing projects including The Myst, Norwood Grand, along with JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
Since June 30 the Group managed cash reserves of $1.8 billion and cash and accessible undrawn dedicated bank centers totalling $3.5 billion. After factoring in reasonable 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 interim dividend of 3.0 cents per ordinary share.
The property development sector remained the largest revenue contributor with a 24.3% rise, driven by Singapore plans including The Myst, Norwood Grand and Union Square Residences, as well as the divestment of the Ransome’s Wharf site in London’s Battersea area and the sale of the office part of Suzhou Hong Leong City Center in China.
City Developments (CDL) disclosed a 3.9% surge 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.
Lower pre-tax revenue of $139.9 million in 1H2025 was mostly as a result of a $63.1 million net foreign exchange loss and decreased divestment gains. Excluding the exchange loss, 1H2025 pre-tax profit would have increased by 95.0% on a like-for-like basis. Patmi climbed as a result of a reduced tax fee compared to the previous year.
The investment properties segment recorded secure profits with a 0.4% rise, sustained by higher payments from Republic Plaza, Jungceylon Shopping Center, City Square Mall and the living market projects in the UK and Japan, countered by lower payments from the Group’s UK commercial estates.
CDL’s NAV as of June 30 was $10.10, down 7 cents ever since Dec 31, 2024. Its share price shut at $6.35 on Aug 12, up 24% this year.
The Group’s performance was adversely affected by net foreign exchange losses of $63.1 million in 1H2025 contrasted to a net forex increase of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have bounced 322.7% to $154.3 million. The devaluation of the US bill noticeably impacted the Group, generally as a result of USD-denominated intercompany loans extended to fund previous United States accommodation acquisitions and operating resources requirements. This net forex loss, paired with weaker efficiency from the hotel operations section, resulted in this section reporting a loss for 1H2025.
