SINGAPORE (Aug 11): City Developments Limited (CDL) posted earnings of $133.8 million for the 2Q ended 30 June, just 0.2% higher than $133.5 million a year ago.

Revenue for the quarter increased 32.4% to $1.1 billion. This was mainly boosted by the full revenue and profit recognition from Lush Acres, a fully sold Executive Condominium (EC), following its Temporary Occupation Permit (TOP) issuance in 2Q this year.

However, costs of sales increased 56.9% to $652.3 million. This resulted in a smaller 7.6% rise in gross profit to $440 million.

Share of after-tax profit of JVs also fell 20.1% to $9.8 million.

In a Thursday filing, CDL announced its plans to launch a new project in the months to come, a 519-unit condominium named Forest Woods located at the Upper Serangoon / Paya Lebar Road junction.

Kwek Leng Beng, executive chairman of the group, says: “In view of the global economic uncertainties and domestic market challenges, we are recalibrating and evaluating our asset portfolio more intensively.”

He also notes increased competition as well as difficulty in land banking in Singapore, especially for listed companies.

CDL’s CEO Grant Kelley adds that the group will continue to look out for suitable opportunities to acquire more overseas properties, and will continue to grow its funds management business such that it can fortify its income stream and generate alpha from development projects.

A special interim dividend of 4 cents per share has been declared.

CDL closed 1.48% higher at $8.89 on Wednesday.