- City Developments’s 1H24 revenue slumped 42% y-o-y to S$1,562.5m due largely to lower contributions from its property development segment (-73%) but this was partially offset by stronger performance from its hotel operations (+11%) and investment properties segment (+21%).
- - Read this at SGinvestors.io -
1H24 PATMI jumped 32% y-o-y to S$87.8m but fell short of expectations
- Gross profit fell by a smaller magnitude of 12% y-o-y to S$693.3m due to a higher gross profit margin of 44.4% (1H23: 29.1%). Reported PATMI jumped 32% y-o-y to S$87.8m due to the boost from higher divestment gains. This accounted for 34% of our initial FY24 forecast and deemed to be below our expectations.
- - Read this at SGinvestors.io -
Announced S$172m of sales value to-date and thus unlikely to meet S$1b divestment target for FY24
- Although City Developments has been focusing on capital recycling, it only managed to announce S$172m of divestments to-date (strata-titled units in Singapore). Management acknowledged that it was unlikely to meet its initial divestment target of S$1b for FY24. As it is targeting some larger-sized deals, this would take time for the negotiation process and could instead be finalised in FY25. Excluding these potential larger-sized transactions, total divestments could amount to S$400-500m for the year.
- Operationally, for City Developments’s hotel operations, 1H24 revenue per available room (RevPAR) rose 3% y-o-y with Singapore and Australasia recording the strongest improvement. Gross operating profit margin increased by 0.9 percentage points (ppt) y-o-y to 31.7%.
- For its investment properties portfolio, committed occupancy stood above 90% for both its Singapore retail (97.6%) and office (93.0%) assets.
Net gearing ratio increased to 69% (including fair value uplift on investment properties)
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-08-15
Previous report by OCBC:
2024-08-05 City Developments - Resilient Home Prices But Tough Backdrop For Sales.
Price targets by other brokers at City Developments Target Prices.
Listing of research reports at City Developments Analyst Reports.
Relevant links:
City Developments Share Price History,
City Developments Announcements,
City Developments Dividends & Corporate Actions,
City Developments News Articles
