CDL's full-year profit down 11.9% to $762.6m

Due to the absence of profits recognised a year ago.

City Developments Limited report a lower full-year net profit, down 11.9% to $762.6m. This is despite strong residential sales in Singapore and China, and divestments including the sale of Summervale Properties.

The lower earnings were due to the absence of the substantial profits recognised last year from CDL’s second Profit Participation Securities (PPS) platform.

Meanwhile, full-year revenue rose 18.2% to a record S$3.9b, up from $3.3b in the previous year. For Q416, revenue rose 36.5% to $1.2b from $855.0m in Q415.

"The increases were driven by the property development segment, with strong maiden contribution from Hong Leong City Center in Suzhou and steady sales of Singapore projects Gramercy Park, Coco Palms, D’Nest and The Venue Residences and Shoppes, as well as revenue recognition in entirety from the fully sold Lush Acres Executive Condominium (EC), which obtained Temporary Occupation Permit (TOP) in June 2016," CDL noted.

Here's the operations review and prospects for its Singapore property development segment:

• In 2016, CDL and its joint venture (JV) associates sold 1,017 residential units including ECs, at a sales value of about S$1.25 billion, emerging as one of the top-selling private sector developers in Singapore (FY 2015: 674 units with total sales value of S$691.5 million). 
• The 519-unit Forest Woods JV development, a short walk to Serangoon MRT station and NEX Shopping Mall, was one of 2016’s best-selling private condominium projects in Singapore. Over 75% of its units have been sold to date.
• Other JV projects have also sold strongly. For instance, the 616-unit Jewel @ Buangkok is fully sold, the 944-unit Coco Palms at Pasir Ris is over 92% sold and the 638-unit The Brownstone EC next to the upcoming Canberra MRT station is 84% sold.
• In view of the good take-up for the 174-unit Gramercy Park luxury project at Grange Road, where 56 units (or 64%) of the 87-unit North Tower (Phase 1) have been sold since its soft launch in May 2016, CDL is planning to launch the South Tower (Phase 2) by 1H 2017.
• Subject to market conditions, CDL also plans to launch the 124-unit New Futura in 2H 2017. Designed by world-renowned architect SOM, the upmarket freehold condominium at Leonie Hill Road is a fiveminute walk to the famous Orchard Road shopping area and features a double-storey clubhouse, lap pool and six sky terraces with panoramic city views. 
• CDL’s office portfolio continued to enjoy healthy occupancy of 95.9% as at 31 December 2016, above the national average of 88.9%.
• The Group’s JV mixed-use development, South Beach, obtained its final TOP for the entire project in December 2016. Both the South Beach Tower (office) and the retail spaces are fully leased, and the rebranded 634-room JW Marriott Hotel Singapore South Beach soft opened for business in midDecember 2016.