City Developments (C09) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 surged 61.1% year-over-year to S$2.7 billion, driven by a 166.8% increase in property development, with full recognition from Lumina Grand and strong sales from Newport Residences and other Singapore projects.

• PATMI tripled to S$301.6 million, reflecting higher development profits, hotel operations returning to profitability, and lower net financing costs.

• Hotel operations rebounded to a pre-tax profit of S$42.0 million from a loss, supported by higher RevPAR (+4.9%) and acquisitions like Holiday Inn London-Kensington High Street.

• All core operating segments showed robust results, with commercial and hotel portfolios performing above market averages.

• Interim dividend of 6.0 cents per share declared, double last year’s interim, with a minimum 35% payout ratio commitment.

Financial highlights

• Group revenue reached S$2,719.6 million in H1 2026, up 61.1% from S$1,687.9 million in H1 2025.

• EBITDA rose 25.9% to S$694 million; PBT up 188.6% to S$403.8 million; PATMI up 230.7% to S$301.6 million.

• Gross profit reached S$983.0 million, up 42.0%, with gross margin at 36%.

• Net asset value per share: S$10.74; RNAV: S$20.09/share.

• Cash and undrawn committed credit facilities totaled S$4.9 billion.

Outlook and guidance

• Strategic review outcome to be announced by end-September 2026, focusing on future direction, gearing reduction, and capital recycling.

• Launch pipeline includes Lucerne Grand (Oct 2026) and two EC projects in Q1 2027, with two new GLS sites secured.

• Commercial pipeline to increase Singapore office NLA by ~40% by 2029, with major projects Newport Tower and Union Square Central.

• Residential market in Singapore expected to remain stable, with price growth of 2-3% and transaction volumes between 8,000-10,000 units.

• Fund management and asset-light strategies to play a larger role, targeting AUM growth beyond S$4 billion.