PROPERTY player City Developments Ltd (CDL) posted a profit of S$113.5 million for its second half ended Dec 31, down 54.7 per cent from S$250.8 million in the previous corresponding period.
This translates to a basic earnings per share (EPS) of S$0.121 against an EPS of S$0.27 in the year-ago period.
H2 revenue fell 23.6 per cent on the year to S$1.7 billion, compared with S$2.2 billion previously, the group said on Wednesday (Feb 26).
The board proposed a final dividend of S$0.08 per share, unchanged from the year prior. Subject to shareholders’ approval at the Apr 23 annual general meeting, it will be paid on May 20 after the record date of May 5.
With the special interim dividend of S$0.02 per share, paid in September 2024, this brings the total dividend for the 2024 financial year to S$0.10 per share, representing a dividend payout ratio of 47 per cent.
For the full year, CDL’s net profit sank 36.6 per cent to S$201.3 million from S$317.3 million in the year-ago period, translating to a basic EPS of S$0.213 against S$0.336 previously. Its revenue fell 33.8 per cent to S$3.3 billion from the record S$4.9 billion in FY2023.
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The declines were driven primarily by its property development segment, which recorded “substantially lower contributions” for FY2024, with its revenue contracting 66.4 per cent to S$939.4 million from S$2.8 billion in FY2023.
This was partly due to FY2023 recording “significant” contributions, including contributions of around S$1 billion from its joint venture executive condominium Piermont Grand (which were recognised in its entirety when the project obtained its temporary occupation permit in January 2023), and of around 50 billion yen (S$495 million) from the divestment of its freehold land site in Shirokane, Tokyo, in the third quarter of FY2023.
Construction delays and elevated costs faced by some projects impacted CDL’s profit recognition schedule and further affected the segment. However, CDL’s investment properties and hotel operations segments both posted revenue growth. Revenue for the investment properties segment climbed 11.2 per cent on the year to S$499.6 million from S$449.5 million. This was due to contributions from acquisitions including St Katharine Docks in London and several living-sector assets in Tokyo and Osaka, as well as organic growth from CDL’s flagship property, Republic Plaza in Singapore, and from its Jungceylon Shopping Center in Phuket, Thailand, which reopened in June 2024 after extensive asset enhancement works.
Revenue for the hotel operations segment grew 8.2 per cent to S$1.6 billion from S$1.5 billion in the year prior. This was driven by contributions from the opening of M Social Phuket in June 2024 after its refurbishment, and from the two acquisitions of Sofitel Brisbane Central hotel in December 2023 and the Hilton Paris Opera hotel in May 2024.
Net gearing ratio (after factoring in fair value on investment properties) rose to 69 per cent as at Dec 31, from 61 per cent for FY2023, mainly due to acquisitions CDL made in FY2024.
As at Dec 31, 2024, its net asset value inched up 0.5 per cent to S$10.17 per share from S$10.12 per share in the year-ago period, while its revalued net asset value per share (factoring in fair value gains on investment properties) climbed 2.1 per cent at S$17.57 per share, from S$17.21 per share in FY2023.
Its earnings before interest, taxes, depreciation, and amortisation fell to S$1 billion from S$1.1 billion in the year prior.
Globally, its revenue per available room in 2024 grew 2.6 per cent to S$172.5 from S$168.1 in 2023, bolstered by hotel acquisitions and openings.
CDL executive chairman Kwek Leng Beng said that the group had secured gains from well-sold residential projects which would be recognised progressively, notwithstanding the global real estate sector’s macroeconomic challenges.
He added: “Our hospitality portfolio continues with a steady momentum, boosted by the strategic additions of the Hilton Paris Opera and the Sofitel Brisbane Central hotels.”
CDL group chief executive Sherman Kwek said that it will continue to focus on strengthening its financial position through capital recycling and attractive acquisitions.
On Wednesday morning, the company called for a trading halt and called off its earnings briefing scheduled for the same day, pending the release of an announcement.
Shares of CDL ended Tuesday 0.4 per cent or S$0.02 lower at S$5.12.
