PROPERTY player City Developments Limited (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 FY2024 to S$0.10 per share, representing a dividend payout ratio of 47 per cent.
For the full year, CDL’s net profit stood at S$201.3 million, down 36.6 per cent from S$317.3 million in the year-ago period, translating to a basic EPS of S$0.213 against S$0.336 previously.
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The lower net profit was largely due to the timing of profit recognition from its property development segment alongside elevated financing costs, CDL said.
Its FY2024 revenue dropped 33.8 per cent to S$3.3 billion from the record S$4.9 billion in FY2023, primarily weighed down by lower contributions from its property development segment which registered “substantially lower contributions” for the year.
This was partly due to significant contributions in 2023, including a S$1 billion contribution from its joint venture executive condominium project Piermont Grand and the divestment of its freehold land site in Shirokane, Tokyo, for 50 billion yen (S$495 million). Elevated financing costs and construction delays for certain projects also affected its expected profit recognition schedule, CDL said.
The investment properties segment’s revenue climbed 11.1 per cent higher for FY2024 – a result of asset acquisitions and organic growth from CDL’s flagship property Republic Plaza in Singapore and the Jungceylon Shopping Center in Phuket, Thailand, which officially reopened in June 2024 after “extensive” asset enhancements.
Contributions from strategic acquisitions completed in 2023 and 2024 – such as St Katharine Docks in London and several living-sector assets in Tokyo and Osaka – further bolstered the segment’s revenue.
The hotel operations segment’s revenue grew 8.2 per cent in FY2024, mainly from additions of Sofitel Brisbane Central in December 2023 and Hilton Paris Opera in May 2024, as well as the official opening of M Social Phuket in June 2024 after its refurbishment.
Net gearing ratio rose to 69 per cent as at Dec 31, from 61 per cent for FY2023, mainly due to acquisitions CDL made in FY2024.
CDL executive chairman Kwek Leng Beng said 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 said: “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 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.
