CDL marks 60th anniversary in style with record earnings of $1.3 bil

CDL reported an all-time-high revenue of $3.29 billion and earnings of $1.29 billion in FY2022, thanks to an operational recovery from the pandemic and a slew of divestment gains. Its executive chairman Kwek Leng Beng calls the results a “sterling” one and noted that the group’s hotel operations had made an outstanding rebound. CDL has embraced capital recycling and unlocked latent value via well-timed divestments and various asset enhancement initiatives. The group sold 1,487 residential units including executive condominiums (ECs) in Singapore in FY2022, representing a total sales value of $2.9 billion.Three launches slated for 2023 include Tembusu Grand, a 638-unit development along Tanjong Katong Road, Newport Residences and The Myst. To mark its diamond jubilee, CDL paid a final dividend of 8 cents per share, in addition to a special dividend of another 8 cents and an interim dividend of 12 cents in September 2022. CDL’s net asset value (NAV) as at Dec 31, 2022 was $10.16, up 9.7%. To further strengthen its cash position, the group revalued its investment and hotel properties at cost less accumulated depreciation and impairment losses.

CDL reported earnings of $165.8 million for 2HFY2022, up 42% y-o-y, with property development contributing $1.38 billion of total revenue for the year. The group has marked its 60th anniversary with an all-time-high earnings of $1.29 billion, thanks to a strong operational recovery from the pandemic and several divestment gains.

CDL’s executive chairman Kwek Leng Beng called the results a “sterling” one, noting the outstanding rebound of its hotel operations. Riding on the return of corporate travel and leisure travelers’ pent-up demand, hospitality is poised to be a star performer for the year ahead. Furthermore, the group’s capital recycling and asset enhancement initiatives have unlocked latent value, reducing its gearing and strengthening cash.

Notable divestment gains over the past year include Senja Close EC the sale of Millennium Hilton Seoul, gain on deconsolidation of CDL Hospitality Trusts (CDLHT) and collective sales of Tanglin Shopping Centre and Golden Mile Complex. These assets were held at book value over a long period, resulting in significant capital gains.

CDL also saw a good sales performance for residential units in FY2022. 1,487 homes including executive condominiums (ECs) were sold, yielding a total sales value of $2.9 billion. Three projects – Piccadilly Grand and Copen Grand, both joint venture projects with MCL Land, and Irwell Hill Residences – were particularly successful.

Looking ahead, the group has three more launches in the pipeline for 2023. Tembusu Grand, a 638-unit development along Tanjong Katong Road, is scheduled for 1H2023. It will also launch Newport Residences, a 45-storey freehold development with 246 units. In the second half of the year, The Myst, a 99-year leasehold condominium along Upper Bukit Timah Road, will be launched.

To mark its diamond jubilee, CDL will pay a total cash dividend of 28 cents for FY2022, compared to 12 cents for FY2021. Its net asset value (NAV) was $10.16 as of Dec 31, 2022, up 9.7%. If fair value gains were factored in, CDL’s revalued NAV would be $16.98 as of the same date.

Kwek Leng Beng commented “Over the past 60 years, the group has weathered many economic storms, property cycles and unprecedented disruptions, but we have always tackled the odds head-on and successfully emerged stronger. We will continue to apply this same discipline and tenacity to bring CDL to greater heights.”