CDL marks 60th anniversary in style with record earnings of $1.3 bil

CDL reports 1HFY2023 earnings of $910.3 milCDL has reported all-time-high earnings of $1.29 billion for FY2022, on the back of its operational recovery from the pandemic and a slew of divestment gains. Thanks to the return of corporate travel and pent-up demand for leisure travel, CDL’s hospitality segment is poised to The Myst be a star performer this year. The group has been embracing capital recycling, unlocking latent value through timely divestments and asset enhancement initiatives. To mark its diamond jubilee, the company is paying a final dividend of 8 cents per share and a special dividend of another 8 cents, bringing total cash dividend for FY2022 to 28 cents.

For FY2022, City Developments Limited (CDL) has recorded an all-time-high in earnings with $1.29 billion, and revenue of $3.29 billion – up 25.4% year-on-year (y-o-y). This was in part due to a 27% improvement in revenue to $1.82 billion for 2HFY2022, and earnings of $165.8 million – a 42% y-o-y increase.

Property development remained the largest contributor to CDL’s revenue, accounting for 42% of the total revenue ($1.38 billion). This includes the success of three key Singapore projects – Amber Park, Haus on Handy, and Irwell Hill Residences. 94% of the 540 Irwell Hill Residences units have already been sold.

CDL’s hotel operations, like all other hospitality operations, was significantly affected by the pandemic. However, thanks to the return of corporate and leisure travel, the segment has made an outstanding rebound with FY2022 revenue up 58%, and RevPAR (revenue per average room) up 91%. This was driven by a 48.9% increase in average room rates, and 14.2 increase in occupancy.

Executive chairman Kwek Leng Beng hails the FY2022 results as ‘sterling’, thanks to the divestment gains and strong performance from its core businesses. CDL has capitalised on capital recycling opportunities, unlocking latent value through divestment and various asset enhancement initiatives.

CDL also achieved significant divestment gains over the past year, including the sale of Millennium Hilton Seoul, the deconsolidation of CDL Hospitality Trusts, and collective sales of Tanglin Shopping Centre and Golden Mile Complex. Last year, the group sold 2,185 residential units worth $4.3 billion, while this year they sold 1,487 units ($2.9 billion). These were driven by Piccadilly and Copen Grand, joint-ventures projects with MCL Land.

CDL is looking ahead to 2023. Three residential launches are on the cards – Tembusu Grand, Newport Residences, and The Myst. The group also plans to celebrate its diamond jubilee (60 years) by paying a total cash dividend of 28 cents per share. Thanks to its conservative approach, CDL ended the financial year with a net asset value of $10.16, and a realisable net asset value per share of $19.14. Chairman Kwek remarks that for the past 60 years, the company has been tackling odds through discipline and tenacity, and will continue to do so to bring CDL to greater heights.