City Developments - DBS Research 2022-08-12: Turning Into A Record Year

• City Developments (SGX:C09) delivered stellar 1H22 results, recording a PATMI of S$1.1b, reversing from a net loss of S$0.03b in 1H21. The strong results were mainly due to gains recognized from the
  1. - Read this at SGinvestors.io -
  2. total gains of S$492.4m (including negative goodwill) on the deconsolidation of CDL Hospitality Trusts (SGX:J85) from the Group following the distribution in specie of CDL Hospitality Trusts in May22.
• Excluding the divestment gains, 1H22 PATMI was S$110m in the black vs net loss of S$32m in 1H21. 1H22 EBITDA grew 19% y-o-y to S$323m
• The strong rebound was led by a strong turnaround in hospitality segment, reversing a net loss of S$143m in 1H21 to PBT of S$15m in 1H22. PBT from property development fell 12% y-o-y to S$104m due to the absence of negative goodwill recognized in 1H21. Excluding the negative goodwill, 1H22 PBT would have recorded a growth of S$21m.
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• City Developments declared a surprise S$0.12 interim dividend vs S$0.03 in 1H21 and S$0.06 typically pre-COVID.

Key highlights

Despite recording lower property sales of 712 units (-27% y-o-y), projects launched year-to-date saw strong take up; most projects are more than 80% sold.

• Read more at SGinvestors.io.

Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-12 SGinvestors.io

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