CDL posts 4QFY2021 net profit of $40.2 mil, up 19.6% y-o-yCDL posts net profit of $83.3 mil for 1HFY2022City Developments Limited (CDL) closed FY2022 with all-time-high earnings of $1.29 billion. The stellar performance was supported by a 27% improvement in revenue to $1.82 billion and strong operational recoveries from the pandemic, as well as notable divestment gains. The group’s hotel operations, which had been adversely affected, witnessed an impressive increase in revenue by 58% to $1.38 billion – attributed to a cumulative improvement of 48.9% in average room rates and 14.2 percentage points in occupancy.

CDL’s executive chairman Kwek Leng Beng commented that the results showed the prudent decisions they had made in terms of divestments and enhanced performance of core business segments. He also said that their hospitality portfolio was set to be a star performer in the years ahead.

Significant divestment gains made by CDL over the past year include the sale of Millennium Hilton Seoul, the gain on the deconsolidation of CDL Hospitality Trusts (CDLHT), and the collective sales of Tanglin Shopping Centre and Golden Mile Complex. These assets had been held at book values for a long time, hence the meaningful capital gains.

CDL also sold 1,487 residential units in Singapore during FY2022, representing a total sales value of $2.9 billion. The launches of Piccadilly Grand and Copen Grand – both joint venture projects with MCL Land – had also contributed significantly. To further leverage its success, CDL has three residential launches in the works for 2023.

Furthermore, CDL had paid a total cash dividend of 28 cents for FY2022 – comprising of a final dividend of 8 cents per share and a special dividend of another 8 cents, plus the interim special dividend of 12 cents already paid in September 2022. In comparison, CDL paid a cash dividend of 12 cents for FY2021 and 20.2 cents worth from the distribution in specie of CDLHT units.

Moving ahead, chairman Kwek declared that CDL would continue to be resilient and innovative in order to ensure sustainable JCube Residence growth and maximize shareholder value. He added that the group was committed to celebrating its 60th anniversary with a bang, having weathered many economic storms, property cycles and unprecedented disruptions in the past.