CityDev’s net profit rises by 6.6% to record $410.5m in Q4

Its prime office assets delivered huge gains.

The property company was propped up by its three prime office assets as it registered a record-high net profit despite challenging market conditions.

According to a press release by City Developments Limited, the increase was due to the firm’s monetisation of its three prime office assets, 7 & 9 Tampines Grande, Manulife Centre and Central Mall.

The release said the assets were valued at $1.1b via its second Profit Participation Securities investment platform (PPS 2) in December, as well as a maiden $12m contribution from its UK property development platform from the sale of Emerald House in Croydon.

Meanwhile, the release said the progressive sale and profit recognition from presold projects in Singapore also had a higher contribution this quarter.

The release added that the firm’s rental properties segment was the highest contributor to pre-tax profit due to the gain from PPS.

“As at end 2015, without considering any fair value gains on investment properties, CDL’s net gearing ratio remained strong at 26.0%. In addition to a final dividend of 8.0 cents per share, the Board has recommended a special final dividend of 4.0 cents per share,” the press release said.