City Developments (C09) H1 2025 earnings summary

Executive summary

• Revenue for 1H 2025 rose 8% year-over-year to S$1.7 billion, driven by strong property development sales, major divestments, and capital recycling initiatives.

• PATMI increased 3.9% to S$91.2 million, with adjusted PATMI up 323% excluding S$63.1 million in unrealised FX losses.

• Hotel operations posted a pre-tax loss due to S$63.1 million in FX losses and weaker performance in Singapore and the US.

• Over S$1.5 billion in contracted divestments year-to-date, including the South Beach transaction and other major asset sales.

• Special interim dividend of 3.0 cents per share declared, with further rewards anticipated pending year-end divestment outcomes.

Financial highlights

• Revenue: S$1,687.9 million (up 8.0% YoY); EBITDA: S$551.2 million (up 21.0% YoY); PATMI: S$91.2 million (up 3.9% YoY); PBT: S$139.9 million (down 10.0% YoY due to FX losses and lower divestment gains).

• Net asset value per share: S$10.10 (down from S$10.17 at end-2024); RNAV at S$19.77 per share.

• Net gearing at 70% (up from 69% at end-2024); average borrowing cost reduced to 4.0%.

• Cash reserves of S$1.8 billion; total liquidity including undrawn facilities at S$3.5 billion.

• Share price up 24.3% YTD as of 12 Aug 2025.

Outlook and guidance

• Continued focus on capital recycling, portfolio optimisation, and disciplined land replenishment, with selective acquisitions and cautious overseas investments.

• Major launches planned for 2H 2025 and 2026, including Zyon Grand and Lakeside Drive.

• Gearing targeted to decrease to low 60s or high 50s medium-term, supported by ongoing divestments.

• Dividend payout policy remains at one-third of earnings, with potential for higher payouts in strong years.

• Potential easing of interest rates could provide further upside.