Building a strong capital base is the key objective of our capital management. This will ensure CDL maintains investor, creditor and market confidence, as well as sustain our business expansion and growth plans.

We manage and adjust our capital structure according to changes in economic conditions. For this purpose, our definition of “capital” encompasses all components of equity, including non-controlling interests. CDL may hence adjust the dividend payment to shareholders or issue new shares or other financial instruments.

The Company’s dividend policy aims to provide a return to shareholders at least once a year, after taking into account the Group’s financial performance, short- and long-term capital requirements, future investment plans, general global and business economic conditions and any regulatory factors. The CDL Board endeavors to maintain a balance between meeting shareholders’ expectations and prudent capital management with a sustainable dividend policy; and will review the policy from time to time and reserves the right to modify, amend and update the policy.

CDL monitors capital using a net debt equity ratio which is defined as net borrowings divided by total capital employed. As at 31 December 2018, we had a net gearing ratio of 31% (Restated FY 2017: 9%), excluding any revaluation surplus from investment properties. We maintained a robust balance sheet with cash reserves of approximately $2.5 billion and interest cover of 14.9 times (Restated FY 2017: 13.5 times). Our financial resources will enable the Group to react swiftly to any attractive opportunities, both locally or abroad. Some of our cash reserves were deployed for recent land acquisitions in Singapore.

CDL’s financial information is described in more detail in our Annual Report 2018. Current and previous reports are available at

Capital Management

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As at 31/12/2014 As at 31/12/2015 As at 31/12/2016 As at 31/12/2017* As at 31/12/2018
Cash and bank balances
(including restricted deposits)
$3,898 m $3,565 m $3,887 m $3,990 m $2,512 m
Net borrowings $2,820 m $2,938 m $1,865 m $1,047 m $3,830 m
Net gearing ratio2 26% 25% 16% 9% 31%
Net gearing ratio
– if fair value gains on investment properties are taken into consideration
19% 19% 12% 7% 23%
Interest cover ratio 12.1 times 13.0 times 12.5 times 13.5 times 14.9 times
* 2017 comparative figures were adjuted to take into account retrospective adjustments arising from the adoption of Singapore Financial Reporting Standards (International) (SFRS(I)) and International Financial Reporting Standards framework and new standards.
2 Excludes fair value gains on investment properties as the Group’s accounting policy is to state its investment properties at cost less accumulated depreciation and accumulated impairment losses.