City Developments 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 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.
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 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.
See also: Del Monte net loss deepens to US$34.2 mil for 1QFY2025
CDL's board announced a special interim dividend of 2 cents per share.
