CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
The Group’s performance was adversely impacted by net forex losses of $63.1 million in 1H2025 compared to a net forex gain of $51.3 million in 1H2024. Excluding these exchange effects, the Team’s Patmi would have jumped 322.7% to $154.3 million. The devaluation of the US dollar significantly impacted the Group, mainly due to USD-denominated intercompany loans expanded to fund previous United States hotel procurements and working resources requirements. This net forex loss, combined with weak efficiency from the hotel operations section, resulted in this segment reporting a loss for 1H2025.
The property development section continued to be the biggest revenue factor with a 24.3% rise, 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 location and the sale of the office element of Suzhou Hong Leong City Center in China.
City Developments (CDL) disclosed a 3.9% rise in Patmi to $91.2 million in 1H2025, for the six months to June 30. Income rose to $1.7 billion in 1H2025, up from $1.6 billion a year ago.
Year-to-date, over $1.5 billion in obtained divestments has been obtained. 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.
Lower pre-tax profit of $139.9 million in 1H2025 was mainly as a result of a $63.1 million internet foreign exchange loss and decreased divestment gains. Omitting the exchange loss, 1H2025 pre-tax earnings would certainly have increased by 95.0% on a like-for-like basis. Patmi rose because of a lower tax fee compared to the former year.
The hotel operations section reported a pre-tax loss of $84.4 million in 1H2025, mostly as a result of a net forex loss from the devaluation of the USD, inflationary expense pressures and weak efficiency in key industry including Singapore and the US.
The investment properties segment documented secure profits with a 0.4% increase, supported by higher payments from Republic Plaza, Jungceylon Shopping Mall, City Square Mall and the living field projects in the UK and Japan, offset by lower payments from the Group’s UK commercial properties.
The increase in sales and net profit were steered by developed performance in the real property growth section, with full earnings recognition from its completely offered joint venture (JV) Executive Condominium (EC) project, Copen Grand, following its completion in April 2025, and various other contributing jobs including The Myst, Norwood Grand, and also JV plans CanningHill Piers, Tembusu Grand, The Orie and Kassia.
CDL’s NAV since June 30 was $10.10, down seven cents ever since Dec 31, 2024. Its share cost closed at $6.35 on Aug 12, up 24% this year.
Since June 30 the Group kept cash reserves of $1.8 billion and cash and accessible undrawn committed financial institution facilities amounting to $3.5 billion. After factoring in reasonable worth on investment properties, the Group’s net gearing proportion ranks at 70% (FY 2024: 69%). Average borrowing costs reduced to 4.0% for 1H2025 (FY2024: 4.4%) following rate cuts across the various jurisdictions. For 1H2025, the Board has declared a special interim returns of 3.0 cents per common share.
