City Developments Limited

For the first half of 2026, CDL reported revenue of $2.7 billion, up from $1.7 billion a year earlier, EBITDA of $694 million (+25.9%), PBT of $404 million, and PATMI of $302 million. Net finance costs fell 47% to $145 million, and the company recorded an exchange gain of $38 million versus an exchange loss of $63 million in the prior period. Hotel revenue rose 6.4% with RevPAR up 4% in Singapore, 10% in the U.S., and 14% in Australasia; hotel GOP margin was 30%, with Singapore at 35% and London at 42%. The interim dividend was $0.06, double last year’s half-year dividend. Management said full-year EBITDA target remains $1 billion, gearing was 75% (up 4% from 31 December 2025), average interest rate was 3.4%, and they hope to end the year at no higher than 3.5%. Looking ahead, they expect healthy cash flows from project TOPs this year and said the launch pipeline is about 2,200 units.

The CEO framed the quarter as a strong operating start, led by Singapore development projects and supported by resilient commercial and hotel assets. He emphasized that capital recycling remains central to CDL’s strategy, but acknowledged that external volatility slowed divestments in the first half. He also said the strategic review is essentially complete, has board approval, and will be shared at the end of September, with more concrete plans on capital recycling, gearing, and portfolio direction.

The CFO highlighted broad-based financial improvement: revenue of $2.7 billion, EBITDA of $694 million, PBT of $404 million, and PATMI of $302 million. She pointed to the segment mix, noting property development doubled EBITDA, hotel operations EBITDA rose 27%, and investment property EBITDA was lower mainly because capital recycling gains were smaller than in the prior year. On the balance sheet, she said gearing rose to 75% due to the two GLS sites and $144 million of capex on Newport and Union Square, but liquidity was strong with $2 billion cash and $4.9 billion of undrawn facilities; average interest cost was 3.4%, with a goal of no higher than 3.5% by year-end.

Analysts focused on slower divestments, higher gearing, Singapore land banking discipline, office pre-leasing, and whether the strategic review would push CDL closer to an asset-light model. Management said divestments are likely to be back-half weighted, but some significant transactions may slip into next year; they also confirmed the legacy U.K. assets remain on the table and said they will not sell below their required value. On land banking, management said CDL will keep bidding for good GLS and en bloc opportunities, but in a disciplined way, while EC participation will continue with more moderate bids under the new rules. For Newport Plaza and Union Square, management said pre-leasing has been encouraging but declined to give detailed commitments beyond earlier disclosure that Union Square was 52% pre-leased.