SINGAPORE (Aug 10): City Developments (CDL) announced earnings of $204.8 million for the 2Q ended June, up 79.5% from its 2Q17 earnings of $114.1 million a year ago, backed by stronger sales recognition during the period under review.
This brings the group’s earnings for 1H18 to $284.8 million, up 35.8% from 1H17 earnings of $209.7 million after also accounting for The Criterion Executive Condominium (EC), which is now fully sold and achieved its temporary occupation permit (TOP) in 1Q.
Revenue for 1Q18 grew 59.2% to $1.4 billion from restated revenue of $854 million a year ago due to strong performance from the group’s property development segment.
The segment’s profits were powered mainly by three projects: New Futura and Gramercy Park in Singapore, Hong Leong City Center (HLCC) in Suzhou, and CDL’s joint venture (JV) development, Park Court Aoyama The Tower in Tokyo.
As at end-June, cash and cash equivalents stood at $2.7 billion compared to restated cash and cash equivalents of $3.8 billion at end-Dec 2017.
Net gearing ratio grew to 19% following the full payment of the recent Singapore land sites acquired.
Going forward, Kwek Leng Beng, executive chairman of CDL, expects residential sales to moderate after the “harsh” property cooling measures announced in July.
“Having navigated various property cooling measures over the years, we have seen that sentiment and timing are critical. As our land bank was bought relatively early before prices rose further, this gives us more flexibility for the commencement of construction and sales launches. Our investment horizon remains long-term and we will continue to adopt a disciplined approach to maximise returns for shareholders,” says Kwek.
Shares in CDL closed 1 cent higher at $9.89 on Wednesday.