MARKET REVIEW AND PERFORMANCE
Amidst the challenging macroeconomic environment, the CDL Group delivered a resilient set of results. For FY 2019, we posted revenue of $3.4 billion (FY 2018: $4.2 billion). The decrease was due to the timing of revenue recognition for the property development segment as the revenue for certain overseas projects and Singapore EC projects cannot be recognised progressively, but only upon completion in entirety. Despite lower revenue in FY 2019, earnings before interest, taxes, depreciation and amortisation (EBITDA) remained strong at $1.13 billion (FY 2018: $1.19 billion). Net attributable profit after tax and non-controlling interest (PATMI) increased 1.3% to $564.6 million (FY 2018: $557.3 million), supported by a portfolio with diversified income streams and boosted by substantial gains from the unwinding of the Group’s second Profit Participation Securities (PPS 2) structure.
For FY 2019, the Group and our joint venture associates sold 1,554 units including ECs with a total sales value of $3.3 billion (FY 2018: 1,113 units with a total sales value of $2.2 billion). The Group launched a record number of six projects, emerging as one of the top-selling private sector developers in Singapore. The Group’s office portfolio remains resilient with a committed occupancy of 89.8% as at 31 December 2019, on par with the islandwide occupancy rate of 89.5%.
In 2019, the Group successfully privatised our London- based hotel arm M&C, in line with our focus to enhance recurring income. For the hotel operations segment, a loss of $6.6 million was reported for FY 2019 due to several factors, including impairment losses of $58.2 million (FY 2018: $94.1 million) made on hotels in US, Europe and Asia; transaction costs for the privatisation of M&C; disruptions to operations following the closure of Millennium Hotel London Mayfair and Dhevanafushi Maldives Luxury Resort in 2018 for repositioning; and refurbishment works at Orchard Hotel Singapore.
As at 31 December 2019, the Group has strong cash reserves of $3.1 billion and Net Asset Value (NAV) per share of $11.60. Had fair value gains on our investment properties been factored in, the Revalued Net Asset Value (RNAV) per share would be $16.46. Post-M&C privatisation, the net gearing ratio (including fair value gains on investment properties) is 43% while interest cover remains healthy at 14.0 times.
NAV per share
Key Financial Information
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|Revenue||$3,304 m||$3,905 m||$3,829 m||$4,223 m||$3,429 m|
|Tax paid||$128 m||$157 m||$162 m||$211 m||$244 m|
|Staff costs||$818 m||$810 m||$831 m||$850 m||$887 m|
|Profit before tax||$985 m||$914 m||$763 m||$876 m||$754 m|
|PATMI||$773 m||$653 m||$522 m||$557 m||$565 m|
|Return on equity||8.6%||7.0%||5.6%||5.6%||5.4%|
|Net asset value per share||$9.89||$10.22||$10.33||$11.07||$11.60|
|Basic earnings per share||83.6 cents||70.4 cents||56.0 cents||59.9 cents||60.8 cents|
|Ordinary dividend per share|
|– Final||8.0 cents||8.0 cents||8.0 cents||8.0 cents||8.0 cents1|
|– Special interim||4.0 cents||4.0 cents||4.0 cents||6.0 cents||6.0 cents|
|– Special final||4.0 cents||4.0 cents||6.0 cents||6.0 cents||6.0 cents1|
For more details on CDL’s FY 2019 financial performance, 5-year financial highlights and business overview, please refer to CDL Annual Report 2019.
|1||Final and special final tax-exempt (one-tier) ordinary dividends proposed for financial year ended 31 December 2019 will be subject to the approval of the ordinary shareholders at the forthcoming Annual General Meeting.|
|2||2017 comparative figures were adjusted to take into account retrospective adjustments arising from the adoption of Singapore Financial Reporting Standards (International) (SFRS(I)) and International Financial Reporting Standards framework as well as SFRS(I)9 – Financial Instruments and SFRS(I)15 – Revenue from Contracts with Customers.|