Singapore’s City Developments net profit rise 60 percent y-o-y in Q3 2016
City Developments Limited (CDL) has announced its financial results for the third quarter of 2016.Singapore-listed international real estate operating company achieved a strong financial performance for Q3 2016.
Net attributable profit after tax and non-controlling interests (PATMI) rose 60.1% to S$170.3 million (Q3 2015: S$106.4 million), due to strong sales performance in the property development segment and gains from the divestment of the Group’s entire 52.52% interest in City e-Solutions Limited.
Revenue increased 14% to S$922.8 million (Q3 2015: S$809.3 million) driven by the property development segment, including maiden contribution from the Gramercy Park project in Singapore and Hanover House project in Reading, United Kingdom, as well as contribution from Coco Palms, D’Nest and The Venue Residences and Shoppes projects in Singapore.
Mr Kwek Leng Beng, CDL Executive Chairman, said, “The Group has remained resilient and achieved strong financial results for Q3 2016, weathering persistent headwinds. To enhance shareholder returns, we are reviewing our asset portfolio and business model. We are accelerating our diversification initiatives and will continue to focus on improving the Group’s performance wherever possible, across all segments – property development, hotel operations, investment properties and funds management. We have an exceptionally robust balance sheet and are building our war chest to capture attractive opportunities during this period of market dislocation.”
Mr Grant Kelley, CDL Chief Executive Officer, said, “As part of our diversification strategy, we have stepped up the growth of our international property and funds management businesses. Following the successful execution of our third Profit Participation Securities platform in October, we now have over S$3.5 billion in funds under management, on track to achieving our target of S$5 billion. That same month, we also acquired a 20% stake in a prime residential project in Tokyo. In September, we created a new platform by acquiring a 20% stake in mamahome, one of China’s fastest growing online apartment rental platforms. Moving forward, we will continue to explore initiatives to enhance recurring income streams, and hone in on our existing development projects.”