SINGAPORE (THE BUSINESS TIMES) – City Developments Limited (CDL) on Thursday (Aug 11) posted a record net profit of $1.1 billion for the first half ended June 30, reversing from a net loss of $32.1 million recorded in the same period last year.

This was mainly due to divestment gains from the sale of Millennium Hilton Seoul, as well as the gain from the group’s deconsolidation of CDL Hospitality Trusts (CDLHT), which resulted from the distribution in specie of CDLHT units in May 2022.

The $1.1 billion was the highest net profit achieved since CDL’s inception in 1963, it said in a press statement. The results translate to earnings per share of $1.235, against a loss per share of $0.042 in the corresponding period a year ago.

Revenue was up 23.5 per cent to $1.5 billion, from $1.2 billion mainly due to the hotel operations segment, although the group’s property development segment continued to lead contributions.

The group’s hotel revenue per available room (RevPAR) also grew 110.4 per cent, with the Europe and US markets experiencing strong improvement in occupancies and average room rates.

“With post-pandemic travel fuelling continued recovery, we expect hospitality to be a star performer for the rest of the year. As Covid-19 concerns wane, our hospitality portfolio will be a valuable growth engine contributing meaningfully to the group’s recurring earnings,” said CDL executive chairman Kwek Leng Beng.

Meanwhile, the property development segment contributed 41 per cent of total revenue for the first half, supported by “well-sold” Singapore projects like Amber Park and Irwell Hill Residences, as well as overseas projects such as Shenzhen Longgang Tusincere Tech Park and New Zealand land sales.

“Notably, this does not include revenue from joint venture projects such as Boulevard 88 and CanningHill Piers which are equity accounted for,” the group said.

The board has proposed a special interim dividend of 12 cents per share.

CDL shares were trading up two cents, or 0.2 per cent, at $8.27 at 1.07pm on Thursday.