City Developments (C09) Q3 2024 TU earnings summary

Executive summary

• Achieved strong operational performance in Q3 2024, with resilience across all business segments and robust sales in Singapore property development.

• Overseas markets, including Australia and China, contributed positively, with significant new project launches and land acquisitions.

• Investment properties in Singapore maintained high occupancy rates, outperforming market averages.

• Hotel operations saw year-over-year growth in RevPAR, especially in Australasia, Europe, and the US.

Financial highlights

• Singapore property sales in Q3 2024: 321 units sold, $611.1 million in value (vs. 183 units, $325.0 million in Q3 2023).

• For 9M 2024, 905 units sold in Singapore, $1.8 billion in value (vs. 691 units, $1.4 billion in 9M 2023).

• China sales for 9M 2024: 123 units, RMB 743.5 million (~$136 million).

• Hotel RevPAR for 9M 2024 increased 2.7% year-over-year to $167.4.

• Net gearing ratio at 70% as of 30 September 2024, with $2.0 billion in cash and $3.9 billion in liquidity.

Outlook and guidance

• Positive outlook for residential sales in Singapore, with strong November performance and improved market sentiment.

• Hotel segment expected to see continued year-over-year growth, bolstered by recent acquisitions and recovery in travel demand.

• Capital recycling initiatives and divestments are expected to increase as interest rates moderate.