City Developments eyes more overseas projects as profits drop 32.8% in Q2

There were no gains from divestments this quarter.

City Developments Limited today revealed that it is actively seeking overseas opportunities on the back of the challenging domestic property market, even as the company’s profit slipped to $137.9m in Q2 compared to $205.1m in the same period last year.

Excluding one-off divestment gains made in 2Q13, CDL’s core earnings surged by 89.7%. There were no significant gains made from divestments this quarter.

The group is eyeing more overseas investments to boost its bottomline. Apart from ongoing projects in the UK and in China, it is also actively seeking opportunities in Japan and Australia and to develop funds management products.

Here’s more from CDL:

Property development was the main contributor to the Group’s earnings, despite the challenging Singapore market which was affected by several rounds of Government property cooling measures.

Profits were booked in from fully or substantially sold projects that are recognised based on stages of construction. Profits from the top-selling Coco Palms and Commonwealth Towers have yet to be recognised as were those from three fully sold Executive Condominiums (ECs).

Hotel operations, primarily from Millennium & Copthorne Hotels plc (M&C), form the next highest contributor to the Group’s earnings.

Strong balance sheet with cash and cash equivalents of $3.4 billion and a healthy net gearing ratio of 33.0% (as at 30 June 2014), without factoring in any fair value gains in investment properties, and taking into account the consolidation of CDL Hospitality Trusts and M&C’s acquisition of new hotels.

The Board is pleased to declare payment of a tax-exempt (one-tier) special interim ordinary dividend of
4.0 cents per ordinary share.