CDL reports 3.9% rise in Patmi in 1H2025 with special dividend of 3 cents
As of June 30 the Group kept cash reserves of $1.8 billion and cash and accessible undrawn dedicated financial institution facilities amounting to $3.5 billion. After factoring in reasonable 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 declared a special interim dividend of 3.0 cents per normal share.
City Developments (CDL) announced a 3.9% increase 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, more than $1.5 billion in contracted divestments has been reached. The anticipated fulfillment 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.
The property development segment stayed the biggest revenue contributor with a 24.3% boost, driven by Singapore plans including The Myst, Norwood Grand and Union Square Residences, in addition to the divestment of the Ransome’s Wharf website in London’s Battersea area and the sale of the office element of Suzhou Hong Leong City Center in China.
The Group’s performance was adversely affected by net foreign exchange 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 leapt 322.7% to $154.3 million. The devaluation of the US dollar significantly affected the Group, primarily because of USD-denominated intercompany loans expanded to fund previous US hotels and resort purchases and operating capital requirements. This net forex loss, combined with weaker performance from the hotel operations sector, caused this segment reporting a loss for 1H2025.
The rise in return and net profit were generated by developed efficiency in the property growth segment, with full earnings acknowledgment from its totally marketed joint venture (JV) Executive Condo (EC) venture, Copen Grand, complying with its completion in April 2025, and various other contributing projects including The Myst, Norwood Grand, as well as JV projects CanningHill Piers, Tembusu Grand, The Orie and Kassia.
Lower pre-tax profit of $139.9 million in 1H2025 was mainly due to a $63.1 million net forex loss and minimized divestment acquires. Omitting the exchange loss, 1H2025 pre-tax profit would certainly have boosted by 95.0% on a like-for-like basis. Patmi climbed due to a reduced tax charge contrasted to the previous year.
The financial investment properties segment recorded steady profits with a 0.4% rise, sustained by greater contributions 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 business real properties.
The hotel operations segment reported a pre-tax loss of $84.4 million in 1H2025, largely due to a net forex decrease from the depreciation of the USD, inflationary expense stress and weak efficiency in key industry like Singapore and the US.
CDL’s NAV since June 30 was $10.10, down 7 cents since Dec 31, 2024. Its share cost shut at $6.35 on Aug 12, up 24% this year.
