- Kwek Leng Beng’s CDL reports 32% increase in PATMI (owner’s profits) to S$87.8M for 1H 2024.
- Company sold 588 residential units worth S$1.2B in 1H 2024.
- CDL declares special interim dividend of 2 cents per ordinary share.
City Developments Limited (CDL) announced strong financial results for the first half of 2024, despite challenges in the real estate sector.
CDL’s Financial Performance in 1H 2024
According to CDL, the company reported a significant increase in its net attributable profit after tax and non-controlling interest (PATMI) for the first half of 2024 (1H 2024).
PATMI is the money a company earns after paying taxes and sharing profits with other owners. It’s the profit that’s left just for the main owners of the company.
CDL’s PATMI rose by 32.0% to S$87.8 million, compared to S$66.5 million in first half of 2023 (1H 2023).
The increase was mainly due to gains from divestments as part of a capital recycling strategy.
It sold 588 residential units worth S$1.2 billion in 1H 2024.
Here are some key highlights to note:
- 269 units were sold during the launch weekend of Lumina Grand in January 2024.
- Total revenue for 1H 2024 was S$1.56 billion, down from S$2.7 billion in 1H 2023.
- Investment properties segment’s revenue increased by 21.3%.
Strategic Acquisitions and Market Challenges
Mr Sherman Kwek, Group Chief Executive Officer of CDL, was quoted as saying, “The real estate sector faced considerable headwinds from macroeconomic conditions and higher financing costs.”
City Developments Limited made notable acquisitions in 2023, including St Katharine Docks and multi-residential sector assets.
The company also acquired two hotel properties in Australia and France.
The Group’s hotel RevPAR increased to S$156.0 in 1H 2024 from S$151.5 in 1H 2023.
RevPAR (Revenue Per Available Room), is a way hotels measure how much money they make for each room they have, whether it’s occupied or not.
Take a look at this quick table for a clear overview:
| Financial Indicator | 1H 2024 | 1H 2023 |
|---|---|---|
| PATMI | S$87.8 million | S$66.5 million |
| Total Revenue | S$1.56 billion | S$2.7 billion |
| Hotel RevPAR | S$156.0 | S$151.5 |
| Residential Units Sold | 588 | Not provided |
Financial Stability and Shareholder Returns
City Developments Limited maintains cash reserves of S$1.7 billion and total liquidity of S$3.7 billion as of 30 June 2024.
The company declared a special interim dividend of 2.0 cents per ordinary share for its shareholders.
The Jungceylon Shopping Center in Phuket achieved a committed occupancy of 89.9% as at 30 June 2024.
Mr Kwek Leng Beng, Executive Chairman of CDL, stated, “Our approach remains disciplined, prioritising capital management and strategic investments.”
Challenges and Future Outlook
Construction delays on certain projects have contributed to lower-than-expected profits.
Increasing financing costs have affected profit contributions from property development.
The hospitality sector’s ongoing recovery suggests potential for increased earnings.
The Paris 2024 Olympics may boost City Developments Limited’s hospitality earnings.
Despite challenges, CDL’s strategic acquisitions and divestments are expected to strengthen its portfolio and sustain revenue streams for future growth.
