CDL's home sales hit $2.5b in first 9 months, more than total amount for 2020

Property developer City Developments (CDL) sold $2.5 billion worth of private homes in the first nine months of this year, surpassing the amount it sold for the whole of last year, the mainboard-listed company said on Tuesday.

The group and its joint-venture (JV) associates sold 414 units with a total sales value of $784.4 million in the third quarter. Its operational update indicates that this brought its sales performance in the nine months ended Sept 30 to $2.5 billion, with 1,382 units sold.

Its year-to-date performance represents a 30 per cent increase in units sold, as well as a 76 per cent increase in total sales value, compared with the same period last year. In financial year 2020, the group sold 1,318 units worth $1.8 billion.

The group's 2021 performance was largely attributed to luxury developments like Irwell Hill Residences, which is 74 per cent sold, and Amber Park, which is 84 per cent sold. Its mid-market project Sengkang Grand Residences is 91 per cent sold.

The company said the highly anticipated 696-unit luxury residence CanningHill Piers - a project involving JV partner CapitaLand - has also drawn "strong interest" ahead of its sales launch on Nov 20.

Still, manpower and resource shortages due to border restrictions and supply chain disruptions continue to have an impact on construction activities at various project sites.

As for CDL's investment properties in Singapore, its office portfolio has a committed occupancy of 91.5 per cent, higher than the national average of 87.1 per cent.

Republic Plaza, CDL's flagship Grade A office building, continues to register positive rental reversion in the third quarter, with a committed occupancy of 94.7 per cent, with demand supported by wealth management, family office, technology and fintech firms.

Meanwhile, vaccination-differentiated measures in retail malls are unlikely to adversely affect footfall and its tenants' sales, CDL said. The committed occupancy for retail space is at 93.3 per cent as at Sept 30, above the national average of 91.1 per cent.

CDL's hotel business improved in the third quarter, with global occupancy rising to 55.4 per cent, against 36.1 per cent in the year-ago period.

Revenue per available room jumped 117.1 per cent to $91.60, from $42.20 a year ago.

Singapore hotels continued to be sustained by quarantine orders and staycations, but these were affected by "heightened alert" measures from early May to mid-August.

Overall, the group's net gearing ratio as at Sept 30 stood at 66 per cent with interest cover at 2.7 times, CDL said. It also has strong cash reserves, at $2.5 billion. CDL said it maintains a "relatively optimistic outlook" as Singapore and the rest of the world transition to an endemic Covid-19.

CDL shares closed at $7.25 yesterday, up 0.42 per cent.

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