City Developments profits down 33.7% to $114.96m in Q3

The property development segment generated lower gross profits.

City Developments Limited (CDL) posted a lacklustre third quarter as profits fell 33.7% YoY to $114.96m during the period from $173.29m over the same period last year, an announcement revealed. Revenue also slipped 12.9% YoY to $885.3m in Q3 from $1.02b in Q3 2018.

Lower revenue was attributed to “timing” of revenue recognition for development projects in the property development segment. The property development segment also generated lower gross profits, the company’s SGX filing revealed.

Also read: CDL profits slide 26.4% to $162.4m in Q2

For the first nine months of 2019, profits dipped 0.5% YoY to $476.92m from $479.38m in 9M 2019. Revenue went down by 27.7% to $2.48b in 9M 2019 from $3.43m in 9M 2018.

Basic earnings per share (EPS) crashed 33.5% YoY to $0.127 for Q3 from $197 for Q3 20128. cents). For the first nine months ending in September, EPS dipped 0.2% to $0.519 from $0.52 for 9M 2018.

Earnings before interest, tax, depreciation and amortization declined 27.6% YoY to $242.9m during the third quarter from $335.7m in Q3 2018.

Net attributable profit after tax and minority interest (PATMI) shrunk 33.7% YoY to $115m in Q3 from $173.3m in the same period last year. PATMI declined as a result of impairment losses on the two M&C hotels and costs for M&C privatisation, said CDL.

As of September 2019, CDL and its joint venture associates has sold 1,130 units including ECs with total sales amounting to S$2.56b in Singapore. This reflects a 44% increase in units sold with about 64% increase in sales value achieved, compared with the corresponding period last year of only 787 units with sales value of $1.56b.

The group launched three residential developments in July: the 820-unit Piermont Grand EC at Punggol, which has so far sold 444 units for $1,080 per sqft (psf); The 156-unit Nouvel 18, of which 24 of the 30 released units have been sold for an ASP above $3,450 psf; and 188-unit Haus on Handy, located across Dhoby Ghaut MRT station, of which 30 out of 40 units released was sold for $2,870 psf.

CDL also recently launched the 680-unit Sengkang Grand Residences at Sengkang Central in November– a JV with CapitaLand. To date, 232 units have been sold at an ASP of around S$1,700 psf.