CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
City Developments (CDL) announced a 3.9% rise 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 section remained the biggest revenue factor with a 24.3% increase, driven by Singapore plans like 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 component of Suzhou Hong Leong City Center in China.
Reduced pre-tax revenue of $139.9 million in 1H2025 was primarily due to a $63.1 million internet foreign exchange loss and decreased divestment acquires. Omitting the exchange loss, 1H2025 pre-tax profit would certainly have enhanced by 95.0% on a like-for-like basis. Patmi climbed due to a reduced tax fee compared to the former year.
Since June 30 the Group managed cash reserves of $1.8 billion and cash and accessible undrawn committed bank 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 different jurisdictions. For 1H2025, the Board has announced a special interim reward of 3.0 cents per normal share.
The increase in revenue and final earnings were driven by developed performance in the property advancement sector, with full profit recognition from its totally sold joint venture (JV) Exec Condo (EC) venture, Copen Grand, following 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.
The hotel operations section disclosed a pre-tax loss of $84.4 million in 1H2025, mostly due to a net foreign exchange decrease from the devaluation of the USD, inflationary expense stress and weak performance in key industry including Singapore and the US.
The financial investment properties segment reported steady profits with a 0.4% increase, supported by greater contributions from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living sector projects in the UK and Japan, offset by lower contributions from the Group’s UK commercial real properties.
CDL’s NAV as of June 30 was $10.10, down seven cents ever since Dec 31, 2024. Its share rate closed at $6.35 on Aug 12, up 24% this year.
The Group’s performance was adversely affected by net forex declines of $63.1 million in 1H2025 contrasted to a net foreign exchange increase of $51.3 million in 1H2024. Excluding these exchange effects, the Group’s Patmi would have bounced 322.7% to $154.3 million. The depreciation of the US dollar substantially impacted the Group, primarily as a result of USD-denominated intercompany loans expanded to fund previous US accommodation purchases and working capital requirements. This net foreign exchange loss, paired with weaker efficiency from the hotel operations segment, led to this segment reporting a loss for 1H2025.
Year-to-date, around $1.5 billion in contracted divestments has been achieved. The anticipated completion 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.
