CDL suffers $1.9b loss in H2 2020

The property firm's revenue fell by 38.5% for FY 2020.

City Developments Limited reported a $1.9b loss in the second half of 2020.

According to the property firm, significant loss was attributable to one-off impairment of $1.78b on Sincere Property Group investment and impairment losses for CDL’s hotels and investment properties of $99.5m and allowance for foreseeable losses for development projects of $35m.

Revenue for the six months ended December crashed by 43.5% to $1.0b from $1.83b a year ago, whilst YoY revenue declined by 38.5% to $2.1b from the previous year’s $3.4b. The firm’s hotel operations accounted for 81% of the decline in revenue.

Despite the grim loss in 2020, the group said it remains confident that its financial position remains robust with sufficient liquidity to meet its operational needs and financial commitments.

“As at 31 December 2020, the group has cash reserves of $3.2b. It maintains a strong liquidity position comprising cash and available undrawn committed bank facilities totalling S$5.2b. Net gearing ratio after factoring in fair value on investment properties stands at 62%,” CDL said.