- The results briefing for City Developments (SGX:C09) was a somewhat downbeat affair given its reported 42% y-o-y decline in revenue to S$1.6b and PATMI of S$88m (+33% y-o-y) that was helped by divestment gains. The miss was due to the property development business where timing of revenue recognition was not in the company’s favour in 1H24, however the profit recognition should come in the few quarters.
- - Read this at SGinvestors.io -
High debt load remains a drag.
- As was evident in 2023, City Developments’s high debt load coupled with high interest rates continued to be a drag on profitability in 1H24. Finance costs increased 25% y-o-y to S$275m in 1H24 with net gearing having risen to 0.69x as at end-1H24 vs 61% as at end-23.
- - Read this at SGinvestors.io -
Capital recycling still a work in progress.
- Read more at SGinvestors.io.
