MARKET REVIEW AND PERFORMANCE

CDL Group reported a return to profitability with net attributable profit after tax and non-controlling interest (PATMI) of $129.7 million for the second half-year 2021 (2H 2021) and $97.7 million for the full year ended 31 December 2021 (FY 2021). Revenue for 2H 2021 increased by 38.4% to $1.4 billion (2H 2020: $1.0 billion) and 24.5% to $2.6 billion for FY 2021 (FY 2020: $2.1 billion). For 2H 2021, the Group saw a jump in revenue contribution from its hotel operations segment across all regions, particularly in the US and Europe, driven by accelerated global vaccine distribution and the gradual relaxation of travel restrictions.

For FY 2021, the property development segment contributed 48% to total revenue, propelled by strong performing Singapore projects such as Whistler Grand, Amber Park, The Tapestry and Irwell Hill Residences, as well as overseas projects, including Shenzhen Longgang Tusincere Tech Park which the Group acquired in February 2021, and contribution from New Zealand land sales. In Singapore, the Group and its JV associates sold 2,185 units including Executive Condominiums (ECs), with a total sales value of $4.3 billion in FY 2021 – the highest annual property sales achieved in the Group’s history1 (FY 2020: 1,318 units with a total sales value of $1.8 billion). This was largely attributed to two successful launches in 2021: Irwell Hill Residences (540 units) and CanningHill Piers (696 units), which are 77% and 86% sold to date respectively, as well as sustained steady sales of its existing inventory. Residential projects Piermont Grand EC and Whistler Grand are fully sold.

Despite a challenging economic backdrop, the committed occupancy of the Group’s Singapore office portfolio remained resilient at 93.3%, above the island-wide occupancy of 87.2%. Republic Plaza, the Group’s flagship Grade A office building, achieved a healthy committed occupancy of 96.4% and registered positive rental reversion in Q4 2021. The tight Central Business District (CBD) office supply situation coupled with the improved business outlook are expected to support rental rate growth in the near term. The Group’s retail portfolio was also resilient, with committed occupancy at 93.8%, above the national average of 91.9%. While the operating challenges of COVID-19 continued to be felt in 2021 as international travel restrictions were still largely in place, the Group’s hospitality business progressed on its road to recovery. Regions with strong domestic markets, like Europe and the US, led the recovery in 2H 2021 with significant improvements in revenue per available room and gross operating profit. The Group expects this trend to continue in 2022.

As at 31 December 2021, the Group has cash reserves of $2.2 billion and a strong liquidity position comprising cash and available undrawn committed bank facilities totalling $3.9 billion. Net gearing ratio (after factoring in fair value on investment properties) stands at 61%.

CDL Group’s Key Financial Information

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Year 2017 2018 2019 2020 2021
Revenue $3,829 m $4,223 m $3,429 m $2,108 m $2,626 m
Tax paid $162 m $211 m $244 m $76 m $100 m
Staff costs $831 m $850 m $887 m $517 m $542 m
Profit/(Loss) before tax $763 m $876 m $754 m ($1,791) m $228 m
PATMI $522 m $557 m $565 m ($1,917) m $98 m
Return on equity 5.6% 5.6% 5.4% (22.5)% 1.2%
Net asset value per share $10.33 $11.07 $11.60 $9.38 $9.28
Basic earnings per share 56.0 cents 59.9 cents 60.8 cents (212.8) cents 9.3 cents
Ordinary dividend per share
– Final 8.0 cents 8.0 cents 8.0 cents 8.0 cents 8.0 cents2
– Special interim 4.0 cents 6.0 cents 6.0 cents 3.0 cents
– Special final 6.0 cents 6.0 cents 6.0 cents 4.0 cents 1.0 cents2
– Distribution in specie of units in CDL Hospitality Trusts 19.1 cents3

 

1 The last annual high was achieved in FY 2007 with $3.4 billion in total sales value with 1,655 units sold.
2 Final and special final tax-exempt (one-tier) ordinary dividends proposed for the financial year ended 31 December 2021 will be subject to the approval of the ordinary shareholders at the forthcoming Annual General Meeting.
3 Illustrative valuation based on CDLHT unit price of $1.20.