SINGAPORE (May 11): City Developments Limited (CDL) announced that its 1Q18 earnings have dropped by 16.3% to $80.0 million, compared to $95.6 million in 1Q17.
Revenue was 35% higher at $1.06 billion, compared to $783.7 million a year ago, propelled by the completion of The Criterion Executive Condominium (EC).
The Group also benefited from the maiden contribution of New Futura as well as continued contributions from Coco Palms and Suzhou Hong Leong City Center but there was an absence of contribution from D'Nest and The Venue Residences which obtained TOP last year.
As cost of sales increased 66.8% y-o-y to $694.7 million, gross profit for 1Q18 came in at $363.1 million, 1.1% lower than $367.3 million last year.
Other operating income increased significantly to $31.2 million from $1.50 million in the previous year, mainly due to a one-off gain from the divestment of Mercure Brisbane and Ibis Brisbane by CDL Hospitality Trusts (CDLHT).
Administrative expenses fell 4.9% y-o-y to $124.9 million, while other operating expenses were 15.7% lower y-o-y at $86.9 million.
Finance costs rose 24.3% y-o-y to $37.6 million, attributable to fair value loss on derivative instruments and fair value loss on financial assets designated at fair value through profit or loss.
The group's pre-tax profit grew 33.7% to $167.4 million, from $125.2 million a year ago. 1Q18 net profit climbed 22.0% to $133.9 million.
As at end March, cash and cash equivalents stood at $3.24 billion.
Kwek Leng Beng, executive chairman of CDL, says: “As the Singapore residential market continues to improve, our strategic approach enabled us to secure three very attractive sites in 1Q18, bringing our total Singapore residential pipeline to over 3,000 units. We will continue to seek strategic bids to bolster our local land bank but will remain highly selective and disciplined. In addition to organic growth, given our strong balance sheet, acquisitive growth is also on our radar and we will continue to prudently seek suitable opportunities that are synergistic with our core real estate business.”
Shares in CDL closed 2 cents lower at $12.53 on Friday.
