City Developments (C09) H2 2024 earnings summary

Executive summary

• Achieved strong Singapore residential sales, selling 1,489 units for S$2.97B, more than double the previous year’s value and representing a 19% market share for 2024.

• Completed over S$600MM in global asset divestments and invested S$2.2B in acquisitions, including a major mixed-use site in Shanghai.

• Hospitality segment saw global RevPAR rise 2.6% year-over-year, with new hotel acquisitions and openings in Paris and Christchurch.

• Investment properties and hotel operations segments saw revenue growth, offsetting lower property development contributions.

• Maintained strong liquidity with S$2.8B in cash reserves and S$4.5B in cash and undrawn facilities.

Financial highlights

• Revenue declined 33.8% to S$3.3B, mainly due to lower property development contributions and absence of one-off gains from 2023.

• EBITDA fell 8.6% to S$1.0B; PBT dropped 20.9% to S$374MM; PATMI decreased 36.6% to S$201.3MM year-over-year.

• Dividend per share was 10.0 cents (down from 12.0 cents in 2023), including a 2.0 cent special interim dividend; payout ratio at 47%.

• Net asset value per share rose 0.5% to S$10.17; RNAV per share increased 2.1% to S$17.57.

• Interest expense increased 21% to S$589MM, impacting profitability.

Outlook and guidance

• Residential market expected to remain resilient, supported by robust demand, steady economy, and population growth.

• Launch pipeline includes ~950 units in Singapore and major projects in China, with construction for the new Shanghai project starting Q4 2025.

• Strategic focus on capital recycling, portfolio optimisation, and recurring income growth.

• Hospitality sector expected to benefit from recent hotel acquisitions and strong RevPAR growth.