City Developments Limited

CDL reported first-half 2026 revenue of $2.7 billion, up from $1.7 billion in first-half 2025, and PATMI of $302 million, roughly 3x higher year over year. EBITDA rose 25.9% to $694 million, while PBT increased to $404 million. Property development revenue surged 167%, hotel revenue rose 6.4%, and investment property revenue increased 3.2%; hotel GOP margin was 30%, with Singapore at 35% and London at 42%. Net finance costs fell 47% to $145 million, aided by an 11% reduction in net interest expense and an exchange gain of $38 million versus an exchange loss of $63 million a year ago. Gearing was 75%, up 4 percentage points from 31 December 2025. For the balance of the year, management expects divestments to be more weighted toward the second half, says it has a healthy launch pipeline of 2,200 units, and expects healthy cash flows from Lumina Grand, Norwood, The Myst, and CanningHill Piers TOP completions. Management also said it aims to end the year with average interest no higher than 3.5% and reaffirmed a minimum 35% dividend payout ratio.

Sherman Kwek said the quarter was driven by strong Singapore property development execution, especially completed or near-completed projects such as Lumina Grand and Newport Residences, while the commercial portfolio and U.K. hotels stayed resilient. He stressed that capital recycling remains central to CDL’s strategy, but acknowledged divestments were slower than hoped in the first half and likely to come later in the year or even into next year. His tone was upbeat but measured, repeatedly pointing to a coming strategic review as the place where CDL will explain its longer-term roadmap.

Yim Ming Yiong highlighted the hard numbers behind the performance: revenue of $2.7 billion, EBITDA of $694 million, PBT of $404 million, and PATMI of $302 million. She said the strong EBITDA was supported by property development, while hotel EBITDA rose 27% and investment property EBITDA was softer because of lower capital recycling gains; net finance costs also dropped 47% to $145 million. On capital management, she noted gearing of 75%, $2 billion of cash, $4.9 billion of undrawn facilities, and average interest of 3.4%, with a goal to finish the year at no higher than 3.5%.

Analysts focused on divestments, Singapore residential land banking, gearing, office pre-leasing, hotel strategy, and the delayed strategic review. Management said divestments are in advanced stages but may slip into next year, and identified legacy U.K. assets as part of the pipeline, while declining to name assets or disclose exact land-bank targets. On gearing, CDL said 75% is high but that the upcoming strategic review will lay out a concrete, asset-backed plan to bring it down; management also confirmed the review was unanimously approved by the Board yesterday and delayed only to allow more final work. On office leasing, CDL said pre-leasing at Newport Plaza and Union Square is encouraging but did not provide new figures beyond the previously disclosed 52% pre-lease for Union Square.