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City Developments announces new launches, lower interest cover in 1QFY2024 update

Goola Warden
Goola Warden • 3 min read
City Developments announces new launches, lower interest cover in 1QFY2024 update
CDL announces new launches, AEIs for four hotels, higher gearing and lower interest cover. Photo: CDL
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City Developments’ 1QFY2024 business updates for the January to March quarter showed its net gearing ratio, factoring in fair value on its investment properties, rising to 63% as at March 31, compared to 61% as at Dec 31, 2023.

Its interest coverage ratio fell to 1.2x compared to 2.8x in FY2023 and 9.8x in FY2022. “Nevertheless, the Group has strong cash reserves of $2.4 billion. It maintains a robust liquidity position comprising cash and available undrawn committed bank facilities totalling $3.7 billion. Its debt expiry profile also remains healthy,” CDL says in its press release.

The statement added that the group maintained a substantial level of natural hedge for its overseas investments and “will continue its proactive and disciplined approach to capital management”.

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