CDL H1 profit jumps three times to S$301 million on strong condo sales, doubles interim dividend

[SINGAPORE] Property developer City Developments Ltd (CDL) on Thursday (Aug 13) said it tripled its net profit for the first half ended Jun 30 to S$301.6 million, from S$91.2 million in the year-ago period.

The jump was driven by a robust performance in its property development segment, notably full revenue and profit recognition from Lumina Grand – a 512-unit executive condominium (EC) in Bukit Batok – which obtained its Temporary Occupation Permit in April.

Revenue for the half year grew 61.1 per cent to S$2.72 billion, from S$1.69 billion in H1 2025.

The board declared a tax-exempt one-tier interim dividend of S$0.06 a share, double the S$0.03 a share declared in H1 2025. The dividend will be paid on Sep 4, after the record date on Aug 21.

Basic earnings per share rose to S$0.333, compared with S$0.097 a year earlier.

Revenue from property development jumped 166.8 per cent to S$1.56 billion in H1 2026, up from S$583.2 million previously.

In addition to Lumina Grand, top-line performance was bolstered by maiden contributions from Newport Residences – which was launched in January and is 83 per cent sold – along with higher contributions from projects such as Norwood Grand and Union Square Residences.

In total, CDL and its joint venture associates sold 352 residential units in Singapore worth S$892.2 million in H1 2026.

Pre-tax profit for the property development segment climbed 121.8 per cent to S$338.1 million, compared with S$152.5 million in H1 2025.

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Hotel operations turned around to a pre-tax profit of S$42 million, from a loss of S$84.4 million the year before. Segment revenue rose 6.4 per cent to S$781.3 million, lifted by global revenue per available room growth of 4.9 per cent to S$161.90, as well as contributions from the newly acquired Holiday Inn hotel in London.

The turnaround was also aided by net exchange gains from the appreciation of the Singapore dollar.

Investment properties revenue rose 3.2 per cent to S$257.1 million. However, pre-tax profit for the segment fell 62.6 per cent to S$28.4 million from S$75.9 million, due to lower capital recycling gains and the absence of contributions from divested assets.

Net finance costs dropped 46.6 per cent to S$144.5 million, compared with S$270.4 million in H1 2025. This was aided by S$37.9 million in net exchange gains – reversing a net exchange loss of S$63.1 million in the year-ago period – alongside lower interest expenses.

CDL maintained a capital position of S$2 billion in cash, with total cash and undrawn committed credit facilities reaching S$4.9 billion.

Net gearing after factoring in fair value on investment properties rose to 75 per cent as at Jun 30, up from 71 per cent as at Dec 31, 2025. The increase was mainly due to land acquisitions for two government land sales sites at Tanjong Rhu Road and Peck Hay Road.

Average borrowing costs decreased to 3.4 per cent from 3.7 per cent in FY2025, following interest rate cuts across key markets.

Net asset value (NAV) per share stood at S$10.74 as at Jun 30. Revalued NAV per share – incorporating fair value gains on investment properties and hotel revaluation surpluses – was S$20.09.

CDL plans to launch the 570-unit Lucerne Grand on Lakeside Drive in October, followed by two EC projects in early 2027: the 430-unit Wynwood Grand at Woodlands Drive 17 and the 300-unit Solano Grand at Senja Close.

Group CEO Sherman Kwek said: “Our priorities remain focused on strengthening portfolio quality, enhancing earnings visibility and pursuing capital recycling initiatives.”

CDL added that the outcome of its strategic review exercise remains on track to be announced by end-September.

Shares of the company ended Wednesday 0.5 per cent or S$0.04 higher at S$7.86.