CDL H2 net profit up over four times at S$538.5 million on improved showings across all segments

[SINGAPORE] City Developments Ltd’s (CDL) second-half earnings rose more than four times to S$538.5 million, from S$113.5 million in the previous corresponding period.

This more than trebled the group’s full-year earnings to S$629.7 million in the 2025 financial year, from S$201.3 million in FY2024.

The improvements were primarily driven by robust residential sales in Singapore and strong capital recycling gains, notably, from the sale of a 50.1 per cent stake in the South Beach mixed-use development in H2 to Malaysian partner IOI Properties Group, said CDL on Friday (Feb 27). The S$834 million transaction yielded a S$465 million gain.

Sherman Kwek, CDL’s group chief executive officer, said that strong residential sales in Singapore and accelerated capital recycling drove a “significant uplift” to the group’s earnings, despite the company facing a “challenging environment with ongoing economic uncertainties” in 2025.

“To maximise shareholder returns, we are actively reviewing our growth strategy, portfolio structures and capital allocation priorities,” Kwek said. “We have taken decisive steps to unlock value from mature and non-core assets, while selectively redeploying capital to drive growth.”

In early 2025, Kwek was embroiled in a public feud with his father and CDL executive chairman Kwek Leng Beng, but the matter was settled subsequently.

For H2, CDL posted an earnings per share (EPS) of S$0.598, versus S$0.121 in the year-ago period. EPS for the full year rose to S$0.694, from S$0.213 in the previous financial year.

Revenue for H2 stood at S$1.9 billion, up 11.1 per cent on the year from S$1.7 billion. Full-year revenue grew 9.7 per cent to S$3.6 billion from S$3.3 billion.

Better results across all segments

CDL said that all its business segments reported improvements for H2 and FY2025, with the property development segment being the biggest contributor to revenue growth.

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For FY2025, that segment’s revenue rose 24.1 per cent on the year to S$1.2 billion, supported by higher contributions from Singapore projects such as The Myst, Norwood Grand and Union Square Residences. The sales of the Ransome’s Wharf site in London and the office component of Suzhou Hong Leong City Center in China also boosted revenue.

Notably, the hotel operations segment saw a 1.7 per cent increase in revenue and improvements in revenue per available room, said CDL. This was supported by new additions including The Mayfair Hotel Christchurch, acquired in January 2025, and the Hilton Paris Opera, acquired in May 2024.

The group noted that the increase in gross profits for H2 and FY2025 was marginal, despite its revenue growth.

Its overall gross profit margin fell to 41 per cent for H2 and FY2025, from 45 per cent for both periods in 2024, as it was impacted by an S$80.5 million allowance for foreseeable losses that was made in relation to China development properties.

As at Dec 31, CDL maintained strong cash reserves of S$2.1 billion.

The board proposed a final dividend of S$0.25 per share, payable on May 19, after the record date on May 4. Together with the special interim dividend of S$0.03 per share paid in September 2025, the total ordinary dividend for FY2025 amounts to S$0.28 per share, representing a 40 per cent dividend payout ratio.

Shares of CDL ended 4.9 per cent or S$0.46 higher at S$9.82 on Friday.