CityDev Q4 profit crashed 23.4% to $186.7m

It lost the revenue boost from Hong Leong City Center that it got in 2016.

City Developments Limited (CDL) profits crashed by 23.4% YoY to $186.7m in Q4 2017. Its full-year profit of $538.2m represented a fall of 17.6%, as it did not have its performance boosted by a sizeable contribution from Hong Leong City Center in Suzhou unlike in 2016.

OCBC Investment Research noted that Q4 revenue jumped 13.8% YoY to $1.33b and this was driven by The Brownstone EC which obtained its temporary occupation permit (TOP) in October 2017. For the full year, CDL’s revenue dipped by 2% to $3.83b.

Looking ahead, CDL is planning to launch a new 861-unit condominium The Tapestry in March this year, which is located along Tampines Avenue 10. Separately, it was also announced that CDL had submitted the top bid for a Sumang Walk site together with its joint venture partner TID. The $509.4m bid price translates into $583 psf ppr, and was 4.8% higher than the second highest bidder. The breakeven price could hit $950-$1,000 psf.

CDL declared a final ordinary and special dividend of 8 cents and 6 cents per share, respectively. This totalled to 18 cents per share for 2017, up from 16 cents for 2016.