SINGAPORE: City Developments Limited’s (CDL) second-quarter net profit soared 79.5 per cent from a year ago, on the back of strong sales.
The property developer on Wednesday (Aug 8) posted a net profit of S$204.8 million, up from S$114.1 million in the same period a year ago.
AdvertisementThe rise came alongside an almost 60 per cent increase in revenue for the quarter to S$1.36 billion, compared to S$854 million last year.
The group said the gains were powered by a strong performance from its property development segment.
For example, its New Futura and Gramercy Park residential developments in Singapore and Hong Leong City Center in Suzhou, China saw strong sales.
In response to the property cooling measures introduced last month, the group said sales are expected to moderate — but sentiment and timing remain critical.
AdvertisementAdvertisementMr Kwek Leng Beng, CDL Executive Chairman, said: “As our land bank was bought relatively early before prices rose further, this gives us more flexibility for the commencement of construction and sales launches. Our investment horizon remains long-term and we will continue to adopt a disciplined approach to maximise returns for shareholders.”
The developer acquired Amber Park in a record freehold en bloc sale last year. It also bid a pretty penny for Sumang Walk — which set a record unit land price bid for an executive condominium site earlier this year.
Nevertheless, the group maintained that it is “well-poised” for its next phase of growth.
Mr Sherman Kwek, CDL Group Chief Executive Officer, said, “Our globally diversified portfolio of residential developments and recurring income properties also enables us to weather headwinds that impact specific asset classes or markets.
“We remain focused on growing our recurring income significantly over the next 10 years through strategic acquisitions, investments and asset enhancements.”
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