CDL achieves 32% increase in PATMI to S$87.8 million for 1H 2024

Singapore, 14 August 2024 - For the half year ended 30 June 2024 (1H 2024), City Developments Limited (CDL) achieved a 32.0% increase in net attributable profit after tax and non-controlling interest (PATMI) of S$87.8 million (1H 2023: S$66.5 million). The increase was supported by divestment gains as part of the Group's capital recycling efforts. Notably, results in the previous corresponding period in 2023 included the full recognition of revenue and profits from an Executive Condominium (EC) project, Piermont Grand, of which the Group owns 60%.

The Group achieved a lower revenue of S$1.6 billion for 1H 2024 (1H 2023: S$2.7 billion) as 1H 2023 included a S$1.0 billion contribution from Piermont Grand, which was recognised in its entirety when the EC project obtained its Temporary Occupation Permit (TOP) in January 2023.

Financial Highlights

(S$ million)	1H 2024	1H 2023	% Change
Revenue	1,562.5	2,703.7	(42.2)
Profit before tax	155.4	179.5	(13.4)
PATMI	87.8	66.5	32.0

The investment properties and hotel operations segments saw a 21.3% and 10.8% increase in revenue for 1H 2024, respectively. The increase in the investment properties segment was mainly driven by the investment properties acquired in 2023, such as St Katharine Docks and the living sector assets. Revenue for the hotel operations segment continued to increase steadily, with Revenue Per Available Room (RevPAR) growth across most regions further bolstered by the addition of the newly acquired Sofitel Brisbane Central hotel in December 2023 and Hilton Paris Opéra hotel in May 2024.

The Group registered a pre-tax profit of S$155.4 million for 1H 2024 (1H 2023: S$179.5 million) largely due to higher financing costs and lower profits from the property development segment.

The property development segment registered substantially lower profits in 1H 2024 vis-à-vis 1H 2023 due to the timing of profit recognition. Unfortunately, construction delays for certain projects resulted in lower-than-expected profit contribution in 1H 2024, whereas in 1H 2023, the Group recorded a substantial profit contribution from Piermont Grand and another completed joint venture (JV) project, Boulevard 88, which obtained its TOP in April 2023. Higher financing costs were also recorded in 1H 2024 for this segment relating to projects that have yet to be launched, including Union Square Residences, Norwood Grand in Woodlands and the Lorong 1 Toa Payoh site.

The investment properties segment is the largest contributor to pre-tax profits for 1H 2024, supported by divestment gains on the sale of strata units in Citilink Warehouse Complex, Cititech Industrial Building and Fortune Centre in 1H 2024, along with contributions from several acquisitions.

The Group's hotel operations segment also reported a healthy pre-tax profit for 1H 2024 and positive EBITDA for all regions, reflecting continued recovery momentum.

As of 30 June 2024, the Group maintained its robust capital position with cash reserves of S$1.7 billion¹, and cash and available undrawn committed bank facilities totalling S$3.7 billion.

After factoring in fair value on investment properties, the Group's net gearing ratio stands at 69% (FY 2023: 61%), following the acquisition of the Hilton Paris Opéra hotel and three Japan Private Rented Sector (PRS) properties, coupled with the share buyback of CDL's ordinary shares and preference shares as well as dividend payments.

The Board is pleased to declare payment of a tax-exempt (one-tier) special interim dividend of 2.0 cents per ordinary share.

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