CDL calls for trading halt, cancels results briefing

SINGAPORE - Listed property developer City Developments Limited (CDL) called for a trading halt before the market opened on Feb 26.

Following the release of its request for trading halt announcement, the company also cancelled a briefing for its 2024 results, which had been scheduled for 10am on Feb 26, pending the release of further announcements.

In a subsequent statement, a CDL spokesman acknowledged that the trading suspension was due to

a disagreement within the board,

although “business operations remain fully functional and unaffected”, and “Mr Sherman Kwek remains the group chief executive officer until such time as there is a board resolution to change company leadership”.

In documents filed with the Singapore Exchange, CDL also posted full-year results that showed a substantial fall in both revenue and net profits.

Revenue fell to $3.3 billion, down 33.8 per cent from the previous year’s $4.9 billion, while net profit after tax and non-controlling interest fell to $201.3 million, down 36.6 per cent from $317.3 million.

Despite the poorer performance, CDL recommended a final ordinary dividend of eight cents per share, bringing the total dividend for 2024 to 10 cents per share, representing a dividend payout ratio of 47 per cent.

By segment, Singapore residential sales reached $2.97 billion in revenue from 1,489 units sold during the period.

The robust performance was bolstered by the successful launches of 512-unit executive condominium (EC) Lumina Grand, the 276-unit Kassia, the 348-unit 99-year Norwood Grand and the 366-unit Union Square Residences.

Nevertheless, this was still substantially lower than the previous year, partly due to the stronger contributions arising from the recognition of the $1 billion joint-venture EC project Piermont Grand, along with the sale of its freehold site in Shirokane, Tokyo, for 50 billion yen (S$495 million), in financial year 2023.

At the same time, elevated financing costs and construction delays for certain projects also affected the group’s expected profit recognition schedule.

Separately, CDL’s 777-unit The Orie in Toa Payoh – the first private residential condominium in the estate since 2016 – achieved

an average selling price of $2,705 per sq ft at its weekend launch in January,

with a take-up rate of 86 per cent. Revenue from the project will be booked only in the first half of 2025.

Revenue from investment properties rose 11.1 per cent year on year. It was underpinned by acquisitions completed during the review period, which included St Katharine Docks in London, several private rented sector assets in Tokyo and Osaka, as well as organic growth from the group’s flagship property, Republic Plaza in Raffles Place, and Jungceylon Shopping Centre in Phuket.

Meanwhile, hotel operations recorded an 8.2 per cent rise in revenue, largely from the acquisition of the Sofitel Brisbane Central and the

Hilton Paris Opera

hotels, and the official opening of M Social Phuket following refurbishment.

CDL also posted more than $600 million in global asset divestments as part of its capital recycling initiative. This helped it maintain a strong liquidity position, with cash reserves of $2.8 billion. The divestments included Singapore assets, such as Cideco Industrial Complex, Fortune Centre and Sunshine Plaza, as well as the Hong Leong City Centre in Suzhou, China.

Despite the sale of these assets, however, the group’s net gearing ratio worsened slightly to 69 per cent from 61 per cent in financial year 2023, due mainly to acquisitions during the review period.

Shares of CDL last traded at $5.12 on Feb 25.