CDL warns of weaker second-half results as divestments slip
Some asset sales are now expected in FY2027, while property valuations could result in impairment losses.
City Developments Ltd (CDL) expects a substantially weaker financial performance for the second half ending Dec 31, 2026, after some planned divestments were delayed. In its Nov 11 third-quarter update, the Singapore property group also warned that valuations under way could lead to impairment losses.
Certain capital-recycling transactions previously anticipated during the remainder of FY2026 are now expected to close in FY2027, CDL said. By comparison, its second-half results in 2025 included a S$473.1 million gain from selling South Beach Consortium. The company also cited unfavourable currency movements, especially the Korean won’s appreciation against the Singapore dollar since July.
CDL said its China offices continued to encounter difficult market conditions as at Sep 30. It is pursuing asset sales and opportunities to optimise the portfolio as part of its capital-recycling efforts.
A plan unveiled at the end of September targets S$6 billion in divestments by FY2029, focusing on mature, non-core or underperforming assets. CDL aims to bring gearing to 55 per cent by FY2029. Its net gearing stood at 75 per cent on Sep 30, largely reflecting two government land acquisitions during the first half.
The group reported cash reserves of S$2.1 billion and S$4.8 billion in combined cash and available committed credit facilities. It said there were no material concerns about meeting near-term debt obligations.
CDL and its joint-venture associates recorded Singapore sales of 124 homes worth S$322.6 million in the third quarter, against 88 homes worth S$313.2 million a year earlier. With no launches during the quarter, existing developments accounted for most sales.
