MARKET REVIEW AND PERFORMANCE
The combination of the COVID-19 pandemic’s impact on the global hospitality sector, losses in China resulting from a weaker operating environment and policy changes to the real estate sector have affected the Group’s performance. The Group reported a loss after tax and non-controlling interest of $1.9 billion for the year ended 31 December 2020 (FY 2020) (FY 2019: PATMI of $564.6 million). Excluding one-off, non-cash impairments of $1.78 billion for losses attributable to our joint venture investment in Sincere Property Group in China, impairment losses for CDL’s hotels and investment properties of $99.5 million and allowance for foreseeable losses for development projects of $35.0 million, CDL would have generated a profit before tax of $120.8 million for FY 2020 (FY 2019: $805.5 million).
Revenue for FY 2020 declined by 38.5% to $2.1 billion for FY 2020 (FY 2019: $3.4 billion). Although the hotel operations segment accounted for 81% of the decline, the property development segment also reported lower revenue due to less contribution from high-end projects such as New Futura and Gramercy Park (both in Singapore), as well as Suzhou Hong Leong City Center (China) which was substantially sold in 2019.
The investment properties segment also registered a decline in revenue with the rental rebates granted to tenants, poorer performance for our retail malls and lower rental contributions from hotels owned by CDL Hospitality Trusts, an indirect subsidiary of the Group, which are accounted for as investment properties due to master lease arrangements.
Despite the unprecedented set of results, the Group’s financial position remains robust with sufficient liquidity to meet our operational needs and financial commitments. As of 31 December 2020, the Group had cash reserves of $3.2 billion. We maintain a strong liquidity position comprising cash and available undrawn committed bank facilities totalling $5.2 billion. The Group is confident to weather this storm with our strong fundamentals and financial strength.
Key Financial Information
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|Revenue||$3,905 m||$3,829 m||$4,223 m||$3,429 m||$2,108 m|
|Tax paid||$157 m||$162 m||$211 m||$244 m||$76 m|
|Staff costs||$810 m||$831 m||$850 m||$887 m||$517 m|
|Profit before tax||$914 m||$763 m||$876 m||$754 m||($1,791) m|
|PATMI||$653 m||$522 m||$557 m||$565 m||($1,917) m|
|Return on equity||7.0%||5.6%||5.6%||5.4%||(22.5)%|
|Net asset value per share||$10.22||$10.33||$11.07||$11.60||$9.38|
|Basic earnings per share||70.4 cents||56.0 cents||59.9 cents||60.8 cents||(212.8) 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||4.0 cents||4.0 cents||6.0 cents||–|
|– Special final||4.0 cents||6.0 cents||6.0 cents||6.0 cents||4.0 cents2|
For more details on CDL’s FY 2020 financial performance, please refer to the CDL Annual Report 2020.
|1||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.|
|2||Final and special final tax-exempt (one-tier) ordinary dividends proposed for the financial year ended 31 December 2020 will be subject to the approval of the ordinary shareholders at the forthcoming Annual General Meeting.|