City Developments reports 36.6% decline in Patmi in FY2024 from lower development profit as gearing rises to 117%.

City Developments Limited (CDL) achieved revenue of $3.3 billion for the full year ended Dec 31, 2024, down from $4.9 billion in FY2023; and net profit after tax and non-controlling interest (patmi) of $201.3 million, down from $317.3 million in FY2023.

The property development segment registered substantially lower contributions in 2024, partly due to significant contributions in 2023 such as the $1.0 billion contribution from its joint venture (JV) Executive Condominium (EC) project, Piermont Grand, and the divestment of its freehold land site in Shirokane, Tokyo, for JPY 50 billion ($495.0 million).

Elevated financing costs and construction delays for certain projects also impacted the Group’s expected profit recognition schedule.

The investment properties segment saw an 11.1% increase in revenue for FY2024, driven by acquisitions completed in 2023 and 2024 such as St Katharine Docks in London and several Private Rented Sector (PRS) assets in Tokyo and Osaka, as well as organic growth from the Group’s flagship property, Republic Plaza, and Jungceylon Shopping Center in Phuket, which officially reopened in June 2024 following extensive asset enhancement works.

The hotel operations segment posted an 8.2% increase in revenue for FY2024, mainly bolstered by the acquisition of the Sofitel Brisbane Central and the Hilton Paris Opéra hotels in December 2023 and May 2024, respectively, and the official opening of M Social Phuket in June 2024 following refurbishment.

The investment properties segment reported a pre-tax profit for FY2024 due to divestment gains from the sale of strata units in Citilink Warehouse Complex, Cititech Industrial Building and Fortune Centre, along with the sale of its entire equity stake in Cideco, which holds an industrial property, Cideco Industrial Complex, in Singapore.

As of Dec 31, 2024, the Group maintained a strong capital position with cash reserves of $2.8 billion and cash and available undrawn committed bank facilities totalling $4.5 billion. Gearing rose to 117% in FY2024, from 103% in FY2023. After factoring in fair value on investment properties, the Group’s net gearing ratio stands at 69% (FY2023: 61%), mainly due to debt for acquisitions in FY2024.

For FY2024, the Board recommends a final ordinary dividend of 8.0 cents per share. Together with the special interim dividend of 2.0 cents per share, which was paid in September 2024, the total dividend for FY2024 amounts to 10.0 cents per share, down from 12.0 cents per share in FY2023. This represents a dividend payout ratio of 47%.