City Developments Limited

CDL reported first-half 2026 revenue of $2.7 billion, up from $1.7 billion in first-half 2025. EBITDA was $694 million, up 25.9%; PBT was $404 million; and PATMI was $302 million. Management said revenue grew 61% year on year, property development revenue surged 167%, hotel revenue rose 6.4% with RevPAR up 4.9%, and investment-property revenue increased 3.2%. On profitability, net finance costs fell 47% to $145 million, and exchange moved to a $38 million gain from a $63 million loss a year earlier. Interim dividend was $0.06, double last year’s half-year dividend, and the company reiterated a minimum 35% dividend payout ratio. Looking ahead, management expects stronger divestments in the second half, healthy cash flow from Lumina Grand, Norwood, The Myst and CanningHill Piers TOPs, and said it hopes to end the year with interest costs no higher than 3.5%.

Sherman Kwek framed the quarter as a strong operational half led by Singapore property development and steady performance in commercial and hotels. He emphasized Newport Residences, Lumina Grand, and other Singapore projects as key contributors, while noting capital recycling was weaker than hoped due to a softer investment backdrop. His tone was upbeat but measured: CDL is still comfortable with its land pipeline, expects more second-half divestment activity, and is preparing to unveil a strategic review at the end of September.

Yim Ming Yiong highlighted the hard numbers: revenue of $2.7 billion, EBITDA of $694 million, PBT of $404 million, and PATMI of $302 million. She said property development drove most of the gains, hotels benefited from RevPAR growth and the Holiday Inn London, Kensington High Street acquisition, and investment-property EBITDA was lower mainly because of reduced capital recycling gains versus a larger gain last year. She also pointed to a 47% drop in net finance costs to $145 million, gearing at 75% after two GLS acquisitions and $144 million of capex on investment properties, $2 billion of cash, $4.9 billion of undrawn facilities, average interest at 3.4%, and a goal to end the year at no higher than 3.5%.

Analysts focused on the slower pace of divestments, the higher gearing, the strategic review timing, Singapore land banking, office pre-leasing, and the outlook for residential prices. Management said several divestments are in advanced stages but may close in 2H or even next year, and confirmed the strategic review was approved unanimously by the Board but delayed to end-September to finalize details. On land banking, CDL said it will keep participating in GLS and en bloc opportunities but in a disciplined way, while on offices it said pre-leasing at Newport Plaza and Union Square is encouraging though it would not disclose figures beyond the previously stated 52% pre-lease for Union Square. On residential pricing, management said the Singapore market looks stable and could end the year with 2% to 3% price growth.