City Developments (C09) H2 2025 earnings summary

Executive summary

• Achieved record Singapore residential sales value of SGD 4.35 billion from 1,657 units sold, the highest in 63 years and a 13% market share, led by launches such as The Orie and Zyon Grand.

• PATMI surged over 200% year-over-year to SGD 629.7 million, despite SGD 155 million in impairments mainly for China commercial properties.

• Disciplined capital recycling with SGD 2 billion in global divestments, including South Beach and Ransomes Wharf, supporting strong liquidity and balance sheet.

• Proposed total dividend of SGD 0.28 per share (40% payout), with a new policy to pay at least 35% of reported PATMI annually.

• Strategic review underway, with results expected by mid-2026 to address perception gaps and refine capital allocation.

Financial highlights

• Revenue rose 9.7% year-over-year to SGD 3.6 billion, driven by strong property development and hotel operations.

• EBITDA increased 43% to SGD 1.5 billion, and PBT more than doubled to SGD 772 million, boosted by capital recycling gains.

• NAV per share grew 5.6% to SGD 10.74; share price climbed 56.6% year-over-year to SGD 8.00.

• Gross interest expense decreased 12% to SGD 520 million; average borrowing cost fell to 3.7%.

• Cash reserves at SGD 2.1 billion, with SGD 4.2 billion in undrawn committed credit facilities.

Outlook and guidance

• Capital recycling and portfolio optimization remain core, with additional divestment opportunities under review.

• Dividend policy set at a minimum 35% of reported PATMI, with a 40% payout for FY2025.

• Singapore residential pipeline robust with new GLS sites secured and targeted launches through 2027.

• Strategic review results, including capital allocation and divestment targets, to be announced by mid-2026.

• Management confident in delivering sustainable growth and maximizing shareholder returns despite macroeconomic uncertainties.