SINGAPORE (Nov 9): City Developments Limited (CDL) posted an 8.3% decline in earnings to $156.1 million for the 3Q ended September from $170.3 million a year ago.
This was mainly due to the absence of divestment gain a year ago from the disposal of CDL’s 52.52% interest in City e-Solutions (CES), as well as the absence of recognition of revenue and profit of the Lush Acres executive condominium, which has been fully sold.
Revenue fell 6.5% during the quarter to $863.1 million, from $922.8 million a year ago.
Other operating income fell 22.0% to $39.2 million in 3Q17, partially mitigated by profit recorded from the disposal of an office building in Osaka in 3Q17.
Excluding these one-off items, CDL’s 9M17 PATMI would have increased by 3.5%.
Administrative expenses decreased by 4.8% to $127.6 million in 3Q17, largely due to lower salaries and related expenses.
Finance income grew 46.2% to $13.3 million in 3Q17, from $9.1 million a year ago.
This was mainly due to higher interest income earned from fixed deposits, higher fair value gain on financial assets held for trading, together with interest income earned from notes subscribed by the group via its third profit participation securities established in 4Q16.
Share of profit of associates grew 17.1% to $7.5 million in 3Q17. Relating primarily to CDL’s share of results of First Sponsor Group, the increase was due to better performances from its sale of properties with a higher number of residential units being handed over to buyers for the Millennium Waterfront project.
As at end September, cash and cash equivalents stood at $3.32 billion.
“As Singapore’s economy seems to be recovering, the prospects for the local property market are brighter, says Kwek Leng Beng, CDL’s executive chairman.
“The current momentum will strengthen and the positive sentiment of pent-up demand will fuel increased activity in the residential property sector which has undergone several years of subdued market conditions since its peak in 2007,” he adds.
“With a strong balance sheet, new acquisitions and investments both locally and overseas will be key focus areas for CDL,” says Grant Kelley, CDL’s chief executive officer. “To date, the group has made $4.2 billion in acquisitions and investments since 2014, on track to achieve our target of $5 billion by end 2018.”
Shares of City Developments closed 22 cents lower at $12.14 on Thursday.
