CDL shares fall 8% after developer warns of significantly weaker second half
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CDL shares were trading at around $6.50 at 10am on Nov 12, down almost 8.6%. At the start of 2026, they were trading for as much as $10.
ST PHOTO: LIM YAOHUI
- CDL shares fell as much as 8% after it warned second-half 2026 results will be much weaker, hit by inflation, high rates and delayed deal completions.
- The company expects foreign exchange losses and possible impairment losses after revaluing its property portfolio, adding pressure on earnings.
- CDL still saw stronger Singapore sales, plans more launches in 2027, and aims to sell $6 billion of assets and cut net borrowings by about $3 billion by 2029.
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SINGAPORE – City Developments Limited (CDL) shares slipped by as much as 8% when the market opened on Nov 12 after the property developer warned that its second-half performance for 2026 would be significantly weaker than a year earlier.
CDL shares were trading at around $6.50 at 10am, down almost 8.6%. At the start of the year, they were trading for as much as $10.
In an operating update released after the market closed on Nov 11, CDL said persistent inflation and elevated interest rates had pushed back some deals it had expected to complete by the end of 2026.
The year-on-year decline is likely to look more stark as the company booked a $473.1 million gain in the second half of 2025 from the sale of its stake in South Beach Consortium.
The slowdown comes after the developer in September revealed a new strategy targeting $6 billion in asset disposals by 2029.
CDL said foreign exchange losses are likely to also weigh on earnings. It noted specifically that the Korean won’s appreciation against the Singdollar since July has led to significant foreign exchange losses for its South Korean subsidiary on a Singdollar-denominated loan owed to it by another group entity.
The developer added that it is revaluing its property portfolio, a process that could lead to impairment losses.
It said its Singapore property sales picked up in the third quarter, although demand came mainly from existing projects due to the absence of new launches. CDL and its joint venture partners sold 124 units worth $322.6 million, up from 88 units worth $313.2 million a year earlier.
In the first nine months of 2026, CDL and its partners sold 476 units worth $1.2 billion. Sales were largely driven by Newport Residences, a 246-unit freehold project in Anson Road that is now 83% sold.
In October, CDL launched the 570-unit Lucerne Grand in Lakeside. It sold 61% of the units over the launch weekend at an average price of $2,480 per sq ft. The project was 73% sold as at the Nov 11 update.
The developer plans to launch two executive condominium projects – Wynwood Grand in Woodlands and Solano Grand in Senja – in the first quarter of 2027.
CDL, which is aiming to cut net borrowings by about $3 billion and bring net gearing down to 55% by 2029, noted that net gearing stood at 75% as at Sept 30, after accounting for the fair value of its investment properties.
The group attributed that level mainly to spending on two government land sale sites in Tanjong Rhu Road and Peck Hay Road, secured in the first half of 2026.