City Developments reported a 32% y-o-y rise in net profits in 1HFY2024

City Developments Limited (CDL) reported a 32% y-o-y rise in Patmi to $87.8 million for 1HFY2024. The increase was supported by divestment gains as part of the group’s capital recycling efforts. The group achieved a lower revenue of $1.6 billion for 1H2024 versus (1HFY2023's $2.7 billion as the latter included a $1.0 billion contribution from Piermont Grand, which was recognised in its entirety when the executive condominium (EC) project obtained its Temporary Occupation Permit (TOP) in January 2023. The investment properties and hotel operations segments saw a 21.3% and 10.8% increase in revenue for 1H2024, respectively. The increase in the investment properties segment was mainly driven by the investment properties acquired in 2023, such as St Katharine Docks and the living sector assets. Revenue for the hotel operations segment continued to increase steadily, with Revenue Per Available Room (RevPAR) growth across most regions further bolstered by the addition of the newly acquired Sofitel Brisbane Central hotel in December 2023 and Hilton Paris Opéra hotel in May 2024. The group registered a pre-tax profit of $155.4 million for 1HFY2024 down from (1HFY2023's $179.5 million largely due to higher financing costs and lower profits from the property development segment. Read also: CDL secures $400 mil sustainability-linked loan from DBS with TNFD-aligned targets, the first of its kind Advertisement Advertisement The property development segment registered substantially lower profits y-o-y in 1HFY2024 due to the timing of profit recognition. Construction delays for certain projects resulted in a lower-than-expected profit contribution in 1H 2024. Higher financing costs were also recorded in 1HFY2024 for this segment relating to projects that have yet to be launched, including Union Square Residences, Norwood Grand in Woodlands and the Lorong 1 Toa Payoh site. The investment properties segment is the largest contributor to pre-tax profits for 1HFY2024, supported by divestment gains on the sale of strata units in Citilink Warehouse Complex, Cititech Industrial Building and Fortune Centre in 1H 2024, along with contributions from several acquisitions. After factoring in fair value on investment properties, the group’s net gearing ratio stands at 69% up from 61% a year ago following the acquisition of the Hilton Paris Opéra hotel and three Japan Private Rented Sector (PRS) properties, coupled with the share buyback of CDL’s ordinary shares and preference shares as well as dividend payments. CDL's board announced a special interim dividend of 2 cents per share.

Singapore residential sales and pipeline

CDL sold 588 residential units worth a total of $1.2 billion in 1HFY2024, keeping pace with the 508 units sold for $1.1 billion in 1HFY2023. Sales in the first half of the year were driven by the launch of

Lumina Grand

, the group's 512-unit EC project on Bukit Batok West Avenue 5. To date, 399 (78%) of the EC's units have been sold.

Sales were also supported by The Residences at W Singapore Sentosa Cove. CDL, which effectively owns 203 units at the 228-unit development, released 54 units for sale in April, which were fully taken up. More units were subsequently put on the market and to date, 84 of their 203 units have been sold. In July, the 276-unit Kassia on Upper Changi Road was launched for sale. The project is being developed by Tripartite Developers, a joint venture made up of CDL, Hong Leong Holdings and TID. To date, the project is 56% sold. Read also: Sole consortium of giant developers bid for Jurong Lake District master developer site Advertisement Advertisement CDL has two new residential projects slated to launch in 2H2024. One is the 366-unit Union Square Residences at the former Central Mall and Central Square sites at Havelock Road. It is the residential component of Union Square, a new mixed-use development on the site that will include, offices, retail space, and a co-living component with a hotel license. Developed under URA's Strategic Development Incentive Scheme, the project was granted a gross floor area uplift of 67% to approximately 735,500 sq ft. The other upcoming launch is the 348-unit Norwood Grand on Champions Way in Woodlands. The project is a five-minute walk to the Woodlands South MRT Station. Meanwhile, CDL, together with joint venture partner Mitsui Fudosan, was awarded a Government Land Sale site on Zion Road in April for $1.107 billion ($1,202 psf per plot ratio). Subject to approvals, the site will be developed into an integrated mixed-use development that includes two towers of about 60 storeys housing 700 residences and a retail podium. A 35-storey block with over 300 apartments will also be built under URA's Serviced Apartment II (SA2) category, piloted as a form of longer-term rental accommodation with a minimum lease period of three months.