City Developments Limited (CDL) achieved record revenue of S$4.9 billion (FY2022: S$3.3 billion) for the full year ended 31 December 2023 (FY2023), primarily driven by the stellar performance of our property development segment.

The Group achieved a lower net profit after tax and non-controlling interest (PATMI) of S$317.3 million (FY2022: S$1.3 billion). This was largely due to higher financing costs in FY2023 and the absence of substantial divestment gains recorded in the prior year arising from the sale of Millennium Hilton Seoul, the deconsolidation of CDL Hospitality Trusts (CDLHT) as well as the completion of the collective sales of Tanglin Shopping Centre and Golden Mile Complex.

The record revenue is underpinned by the property development segment, which doubled its revenue, largely due to our fully sold Executive Condominium (EC) project Piermont Grand, which obtained its Temporary Occupation Permit (TOP) in 1H 2023, enabling its revenue and profit to be recognised in entirety upon completion under prevailing accounting policies for ECs. The Group also divested our freehold land site in Shirokane, Tokyo, in Q3 2023 for JPY 50 billion (approximately S$495 million).

In Singapore, the Group and our JV associates sold 730 units including ECs, with a total sales value of S$1.5 billion (FY2022: 1,487 units with a total sales value of S$2.9 billion). Sales were mainly attributed to two project launches during the year – Tembusu Grand, which sold 60% of its 638 units as at 25 February 2024, and The Myst, which sold 51% of its 408 units as at 25 February 2024. Three other projects were fully sold during the year – 188-unit Haus on Handy, 592-unit Amber Park and 407-unit Piccadilly Grand.

As at 31 December 2023, the Group’s Singapore office portfolio1 achieved a committed occupancy of 97.1%, above the island-wide occupancy of 90.1%2, with Republic Plaza reporting a 97.0% committed occupancy and positive rental reversion of 7.3%3. City House and King’s Centre were 99.4% and 100% occupied and achieved rental reversion of 5.1%3 and 13.3%3 respectively for 2023. The Group’s Singapore retail portfolio4 registered a committed occupancy of 97.6%, above the island-wide occupancy of 93.5%2.

Propelled by the rebound in the hospitality sector, global RevPAR for the Group’s hotels grew 25.3% to S$168.7 for FY2023 (FY2022: S$134.6), exceeding 2019’s pre-pandemic levels by 22.0%, primarily fuelled by strong average room rate (ARR) growth. All regions recorded extraordinary RevPAR growth year-on-year, especially Asia and Australasia.

As at 31 December 2023, the Group maintained a robust capital position with cash reserves of S$2.2 billion5, and cash and available undrawn committed bank facilities totalling S$3.6 billion. After factoring in fair value on investment properties, the Group’s net gearing ratio stands at 61% (FY2022: 51%), following the completion of various acquisitions in 2023.

Key Financial Information (in Singapore Dollar)

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Year 2019 2020 2021 2022 2023
Revenue $3,429 m $2,108 m $2,626 m $3,293 m $4,941 m
Tax paid $244 m $76 m $100 m $338 m $226 m
Staff costs $887 m $517 m $542 m $713 m $715 m^
Profit/(Loss) before tax $754 m ($1,791) m $215 m* $1,857 m $473 m
PATMI $565 m ($1,917) m $85 m* $1,285 m $317 m
Return on equity 5.4% (22.5)% 1.0%* 13.9% 3.5%
Net asset value per share $11.60 $9.38 $9.26* $10.16 $10.12
Basic earnings per share 60.8 cents (212.8) cents 7.9 cents* 140.3 cents 33.6 cents
Ordinary dividend per share
– Final 8.0 cents 8.0 cents 8.0 cents 8.0 cents 8.0 cents6
– Special interim 6.0 cents 3.0 cents 12.0 cents 4.0 cents
– Special final 6.0 cents 4.0 cents 1.0 cents 8.0 cents
– Distribution in specie of units in CDL Hospitality Trusts 20.2 cents7
1 Includes South Beach (in accordance with CDL’s proportionate ownership). Excludes assets planned for redevelopment
2 Based on Urban Redevelopment Authority (URA)’s real estate statistics for Q4 2023
3 Refers to renewed leases
4 Includes South Beach and Sengkang Grand Mall (in accordance with CDL’s proportionate ownership). Excludes assets planned for redevelopment and City Square Mall units affected by AEI
5 Net of overdraft
6 Final tax-exempt (one-tier) ordinary dividends proposed for the financial year ended 31 December 2023 will be subject to the approval of the ordinary shareholders at the forthcoming Annual General Meeting
7 Based on the CDLHT unit price of S$1.27 on 25 May 2022
* As the proposed REIT listing of the two UK commercial properties did not materialise, in accordance with SFRS(I) 5, the Group has reclassified the assets held for sale and the liabilities directly associated with the assets, back to the Group’s respective assets and liabilities. Restated PBT and PATMI are lower by $12.9MM for FY 2021 vis-à-vis previously reported
^ Excluding staff costs for directors which are disclosed in CDL AR 2023, note 38