CDL’s second-half profit up 42% on disposal gains, higher revenue
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CDL recognised a pre-tax gain of $256.3 million after completing the collective sale of Tanglin Shopping Centre.
PHOTO: ST FILE
Michelle Zhu
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SINGAPORE – City Developments Limited (CDL) on Thursday posted a net profit of $165.8 million for the half-year ended December 2022, up 42 per cent from $116.8 million of restated income for the year-ago period.
For the previous comparative year, the group reclassified its assets held for sale, along with their directly associated liabilities. This was after its proposed real estate investment trust listing of its two British commercial properties fell through.
For the second half of financial year 2022, the group recognised a pre-tax gain of $256.3 million after completing the collective sale of Tanglin Shopping Centre, and $75.6 million after that of Golden Mile Complex.
Revenue grew 27 per cent to $1.8 billion from the previous year’s restated revenue of $1.4 billion. The top-line growth was driven primarily by the hotel operations segment, which contributed to 43 per cent of the group’s total second-half revenue.
Revenue per available room for the half-year period rose 73.6 per cent, with improved room occupancies and average room rates, following the easing of border restrictions and a gradual recovery from the Covid-19 pandemic.
Gross profit margin fell to 36 per cent from 39 per cent the previous year, mainly due to allowance for foreseeable losses of $61.8 million made on four development properties in Britain, and one development property in China.
For the whole of financial year 2022, net profit was $1.3 billion as opposed to a restated profit of $84.7 million for the previous year, while revenue grew 25.4 per cent to $3.3 billion from $2.6 billion.
This represented the highest figure achieved since CDL’s inception in 1963, said the group, boosted by a “bountiful year of gains” including its sale of Millennium Hilton Seoul, and a gain on the deconsolidation of CDL Hospitality Trusts (CDLHT) following the distribution in specie of CDLHT units in the first half.
Its board recommended a final dividend of eight cents per share and a special final ordinary dividend of the same amount for financial year 2022.
Together with a special interim ordinary dividend of 12 cents paid in September 2022, this brought CDL’s total cash dividend for financial year 2022 to 28 cents.
“Riding on the return of corporate travel and unabated pent-up demand for leisure travel, our hospitality segment will continue to strengthen and is poised to be a star performer for the year ahead,” said CDL executive chairman Kwek Leng Beng.
“A key focus for our hospitality portfolio will be to accelerate plans for asset optimisation, alignment to the group’s sustainability goals, and driving growth,” he said.
CDL shares traded at $7.84 on Thursday.
