CityDev posts 10.4% rise in 3Q earnings to $161.8 mil

SINGAPORE (Nov 8): City Developments saw its earnings grow 10.4% to $161.8 million for the 3Q18 ended September, from $146.6 million a year ago.

3Q18 revenue rose 17.7% to $1.02 billion, from $863.8 million a year ago.

The increase was due to higher revenue recognised from the property development sales in Singapore.

In addition, contribution from Phase 2 of Hong Leong City Center (HLCC), Suzhou and Park Court Aoyama The Tower, Tokyo also contributed positively to Group’s 3Q performance.

Other operating income fell 53.6% to $14.3 million in 3Q18, mainly due to lower divestment gain accounted during the quarter.

Share of profit of joint ventures fell 68.3% to $2.7 million, mainly due to the timing of profit recognition for the property development joint venture projects.

As at end September, cash and cash equivalents stood at $2.5 billion.

“Given the rapidly evolving business landscape, our diversified business in terms of product, sector and geography has helped us to weather headwinds that may impact any specific sector,” says Kwek Leng Beng, executive chairman of City Developments.

“While Singapore will always remain as our core focus, we will continue to explore opportunities both domestically and overseas to diversify, enhance earnings and maximise returns for shareholders,” he says.

“Looking ahead, we remain focused on growing our development pipeline and recurring income portfolio through a strategic and disciplined approach,” says group CEO Sherman Kwek.

Shares in CityDev closed 7 cents lower at $8.42 on Thursday.