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

CDL posts 1HFY2022 earnings of $79.6 milCity Developments Limited (CDL) reported record-breaking earnings of $1.29 billion for FY2022, thanks to a slew of divestment gains and operational recovery from the pandemic. An increase in revenue by 27%, to $1.82 billion for 2HFY2022, also helped to propel earnings to an all-time-high. The group’s executive chairman Kwek Leng Beng calls the results a “sterling” one, and attributes it to prudent divestments and strong operational performance from its core business segments.

CDL has displayed discipline, agility, resilience and innovation to deliver sustainable growth and ensure maximum long-term shareholder value. Riding on the return of corporate travel and pent-up demand for leisure travel, its hospitality Tengah EC segment is once again a star performer. Furthermore, the group has embraced capital recycling and unlocked latent value via well-timed divestments and asset enhancement initiatives.

The biggest contributor to CDL’s revenue for the year was property development, accounting for 42% of FY2022 revenue at $1.38 billion. Comprising of three key projects in Singapore – Amber Park, Haus on Handy, and Irwell Hill Residences – these have been the impetus for the group’s outstanding results. 94% of the 540 units at the 99-year leasehold Irwell Hill Residences have been sold to date.

CDL’s hotel operations, hard hit from the pandemic, have achieved a strong rebound. Revenue for FY2022 surged 58% to $1.38 billion, buoyed by a 91% increase in hotel RevPAR (revenue per average room) to $137.90. The RevPAR growth was attributable to both a 48.9% increase in average room rates and a 14.2 percentage point improvement in occupancy.

Significant divestment gains were made by CDL over the past year, including the sale of Millennium Hilton Seoul, the deconsolidation of CDL Hospitality Trusts and the collective sales of Tanglin Shopping Centre and Golden Mile Complex where the group holds share values and strata areas. Held at book value over a long period of time, these divestments resulted in significant capital gains.

The property and hospitality company also sold 1,487 homes, comprising executive condominiums, in Singapore during FY2022, at $2.9 billion. In the pipeline for 2023, CDL has three residential launches planned – Tembusu Grand, Newport Residences and The Myst.

To mark its diamond jubilee year, CDL will be paying a final dividend of 8 cents per share, plus a special dividend of 8 cents. With an interim special dividend of 12 cents already paid in September 2022, this brings total cash dividend for FY2022 to 28 cents. CDL’s net asset value (NAV) was $10.16 as at Dec 31 2022, up 9.7%. With fair value gains included, CDL’s revalued NAV would be $16.98 and its RNAV (realisable net asset value) per share would be $19.14.

Chairman Kwek Leng Beng states that CDL has weathered many storms, property cycles and unprecedented disruptions over the last sixty years and has emerged from each challenge stronger. As the group marks it’s 60th anniversary, they are optimistic and will continue to apply exacting discipline to bring CDL to greater heights.