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CityDev's net profit dips 7.7% to $154.6m
Blame the 96% decline in other operating income.
The past quarter has been fairly resilient for City Developments Limited if not for the 96% slump in its other operating income to $524,000 from a robust $13.1m.
For 2Q17 and 1H17, CDL achieved revenue of $854.1m and S$1.6b and a net profit of $154.6m and $253.8m, respectively.
The revenue and net profit were underpinned by the contribution from Lush Acres Executive Condominium (EC).
Excluding the contribution of Lush Acres EC which obtained its Temporary Occupation Permit (TOP) in Q2 2016, when revenue and profit were recognised in entirety upon completion under prevailing accounting policies for ECs, the Group’s revenue and PATMI would have increased by 15.7% and 43.4% respectively for 2Q17, and 12.1% and 7.4% for 1H17.
For 2Q17 and 1H17, PATMI and revenue were driven by contribution from well-received projects including Gramercy Park, Coco Palms and The Venue Residences, coupled with continued profit recognition from Hongqiao Royal Lake, Shanghai and Hong Leong City Center (HLCC), Suzhou when the units were handed over to buyers progressively.
With improved market sentiments, ahead of the Additional Buyer’s Stamp Duty deadline, The Venue Residences is fully sold.
CDL Executive Chairman said after several years of subdued market conditions coupled with macro headwinds, the ‘heartbeat’ of Singapore’s residential property market appears to be getting stronger with increased activity and some vital signs of a possible stabilisation.
"CDL is well poised to benefit from an upcycle. In addition to strong residential sales, we will also benefit from monetisation opportunities to unlock value through potential collective en-bloc prospects for some of our mature assets, as well as possible divestment or repurposing of our non-core properties," he said.
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