CDL posts 10.4% rise in 3Q earnings; with higher contribution from development sales in Singapore

/ EdgeProp Singapore |
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Singapore listed property group City Developments Ltd (CDL) saw its earnings grow 10.4% to $161.8 million for 3Q2018 ended September, from $146.6 million a year ago. 3Q2018 revenue rose 17.7% to $1.02 billion, from $863.8 million the previous year.
The increase was due to higher revenue and earning recognised from the property development sales in Singapore. YTD September 2018, the group and its joint venture associates sold 787 units worth $1.56 billion in sales value.
As at end September, the 124-uni New Futura is 84% sold (Photo Credit: CDL)
Since its January launch, the 124-unit New Futura at Leonie Hill Road is 84% sold. The average selling price achieved was over $3,500 psf. At the 861-unit The Tapestry at Tampines Avenue 10, which was launched in 1Q2018, 544 units have been sold to date at an average price of $1,350 psf. South Beach Residences, the group’s 190-unit luxury residences in a joint venture with IOI Group, previewed in September. To date, 12 out of the 50 units released have been sold, including the 6,728 sq ft super penthouse which fetched $26 million ($3,864 psf).
CDL’s latest launch in Singapore was the 716-unit Whistler Grand in West Coast Vale. It was launched on Nov 3, and 160 units out of 240 released were sold within the first weekend at an average price of $1,380 psf.
Revenue was further propelled by the full recognition of The Criterion executive condominium (EC) which obtained its Temporary Occupation Permit in 1Q2018, according to CDL.
Artist's impression of the cantilevered gym at the clubhouse of Whistler Grand (Photo Credit: CDL)
The group has three more projects that it is readying for launch in 1H2019: the Amber Park en bloc site which will have 592 new units; the new 188-unit project on the Handy Road land site and the 820-unit EC development at Sumang Walk, which is likely to be the only EC launch in 2019.
In China, Phase 2 of Hong Leong City Center (HLCC) in Suzhou was completed in 1H2018. CDL and its joint venture associates sold 193 unit and 16 villas in the development as at end September, with total sales value of RMB979.44 million ($195 million).
In Japan, the 160-unit Park Court Aoyama The Tower in central Tokyo was completed in 1H2018. Revenue was recognised for 140 units that have been handed over to buyers as CDL has a 20% interest in the project.
The former London Stock Exchange building at 125 Old Broad Street was purchased for £385 million last month (Photo Credit: CDL)
As part of CDL’s focus on expanding its recurring income base, the group acquired two prime freehold, Grade-A commercial buildings in London, UK: Aldgate House, located beside Aldgate Underground Station and adjacent to the financial district, for £183 million ($328 million) in September; and 125 Old Broad Street, the former home of the London Stock Exchange, for £385 million (approximately S$687 million) in October. The latter is located within the financial district and is a five-minute walk to Liverpool Street Station and several Underground Stations. Both Aldgate House and 125 Old Broad Street are currently under-rented and have seen positive rental reversions.
In China, asset enhancement for the office block within Yaojiang International complex in Shanghai’s prime North Bund Business District is scheduled for completion by end 2018. The office block was acquired for RMB 148 million ($30 million) in 3Q2018. A long master lease agreement has been signed with Distrii, a leading co-working company in China that CDL has an equity stake in.
Crowd at Whistler Grand on the launch weekend where 160 of 240 units released were sold (Photo Credit: CDL)
As at end September, CDL’s net gearing ratio stood at 23%, with $2.9 million in cash reserves and interest cover of 16.6 times. “Given the rapidly evolving business landscape, our diversified business in terms of product, sector and geography has helped us to weather headwinds that may impact any specific sector,” says Kwek Leng Beng, executive chairman of CDL. “While Singapore will always remain as our core focus, we will continue to explore opportunities both domestically and overseas to diversify, enhance earnings and maximise returns for shareholders.”
Group CEO Sherman Kwek adds: “Looking ahead, we remain focused on growing our development pipeline and recurring income portfolio through a strategic and disciplined approach.”

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