SINGAPORE (THE BUSINESS TIMES) - Property developer City Developments (CDL) swung into the black with a net profit of $129.7 million for the second half ended Dec 31, 2021, compared with a net loss of $1.92 billion a year ago.

The company saw its hotel operations segment return to profitability in the half-year period and expects an imminent rebound in the hospitality sector, it said in a bourse filing on Friday (Feb 25).

CDL's $1.92 billion net loss in the second half of 2020 was largely due to its writedown of 93 per cent of its total investment in Sincere Property Group, amounting to $1.78 billion. CDL has since sold its stake in the cash-strapped Chinese developer, for US$1 (S$1.35).

For the second half of last year, earnings per share stood at 13.6 cents, reversing from a loss per share of $2.125 a year ago.

Revenue for the second half rose 38.4 per cent to $1.43 billion, from $1.04 billion a year ago. This was due to higher revenue contribution from its hotel operations segment across all regions in the second half, particularly in the United States and Europe.

A final dividend of eight cents per share was declared for the full year, as well as a special final dividend of one cent per share.

CDL's board of directors has also proposed a special distribution in specie of 144.3 million stapled CDL Hospitality Trusts units on a pro rata basis, which are estimated to be valued at 19.1 cents per share.

CDL also said it intends to distribute, as a dividend in specie, 11.7 per cent of the units of CDL Hospitality Trusts, to CDL shareholders.

In the second half of 2020, the company had declared a final dividend of eight cents per share, and a special final dividend of four cents per share.

The dividends will be paid on May 26, once approved by shareholders at the annual general meeting on Apr 28. The record date is on May 5.

For the full year ended Dec 31, 2021, net profit also swung into the black, to $97.7 million, from a net loss of $1.92 billion, while revenue was up 24.5 per cent to $2.63 billion.

The company's hotel operations segment "is poised for a long-awaited imminent rebound", boosted by pent-up demand for tourism and corporate travel, said CDL executive chairman Kwek Leng Beng.

"At the same time, to generate sustainable returns for shareholders, we will be agile and opportunistic to redeploy our capital to acquire assets in resilient sectors," he said.

Shares of CDL closed down 3.2 per cent, or $0.23, at $7.01 on Thursday.