City Developments' Q2 profit soars 48% to $203.8 million
Net profit for property developer City Developments (CDL) soared 48 per cent to $203.8 million on the back of a 1.8 per cent rise in revenue to $801.6 million over the same period last year.
Its rental property segment contributed the highest earnings to the group due to the gain recognised from the disposal of 100G Pasir Panjang and other industrial facilities. These properties were leased out and held for long term investments before they were sold.
The property development segment also accounted for a sizeable portion of its earnings. Profit were booked-in for pre-sold projects such as Cube 8, 368 Thomson and joint-venture projectures such as The Palette and Bartley Residences.
Although CDL enjoyed brisk sales for its two executive condominiums - Blossom Residences and The Rainforest - it could not recognise profit contribution for the two projects for the quarter due to prevailing accounting treatment.