CDL Net Profit Trebles 231% to S$301.6M on Stronger Development Revenue

CDL’s property development revenue jumped 166.8% to S$1.56 billion in H1 2026, from S$583.2 million in the year-ago period. Chief executive Sherman Kwek described the first half as a “good start”, with revenue and profit recognition from Singapore development projects coming through at a much faster pace.

Profits were driven partly by quicker construction progress at projects such as the recently completed Lumina Grand executive condominium in Bukit Batok, and strong sales at Newport Residences. The CBD project launched for sale in January and has since sold more than 80% of its units at a median price of S$3,078 per square foot. Other developments such as Norwood Grand in Woodlands and Union Square Residences, which had got off to a slower start, are now seeing steady sales, Kwek added.

Earnings per share shot up more than three times to S$0.333 from S$0.097 previously. CDL shares gained on the news, ending Thursday 4.3% or S$0.34 higher at S$8.20, though they still trade under their net asset value of S$10.74 per share as at Jun 30.

CDL’s pipeline stands at around 2,200 units across five new projects. These include the 570-unit Lumina Grand along Lakeside Drive, which will hit the market in October, and two executive condominium projects, Wynwood Grand in Woodlands and Solana Grand in Bukit Panjang, slated for launch in the first quarter of 2027.

Two recently acquired government land sale (GLS) sites at Tanjong Rhu Road and Peck Hay Road in Newton could also come to market in Q2 and H2 2027 respectively. The two acquisitions, made at record prices, pushed net gearing to 75% as at Jun 30, up four percentage points from end-2025.

Kwek said CDL now has a “comfortable” level of supply, giving sufficient visibility over upcoming launches without overextending its land bank. “We don’t want to go back to a point in time, like in early 2018, when I had 4,000 units in the pipeline, and then suddenly, some cooling measure came out, and then our share price was really wrecked,” he said.

CDL may also consider en bloc opportunities where pricing is compelling, though Kwek noted that en bloc acquisitions “usually are not our preferred method because it entails a much longer and cumbersome process”.

CDL’s hotel operations recovered from a pre-tax loss of S$84.4 million a year ago to post pre-tax profits of S$42 million, as revenue increased 6.4% to S$781.3 million. Global revenue per available unit (RevPAR) rose 4.9% to S$161.90. Executive chairman Kwek Leng Beng said the hospitality portfolio showed “steady momentum with RevPAR growth across all regions”.

On the investment properties front, pre-tax profit fell 62.6% to S$28.4 million due to “noticeably absent” capital recycling gains from divested assets. Kwek attributed the lack of divestments to geopolitical tensions and global uncertainty dampening investor sentiment, adding that divestments will “probably be more weighted in the second half”.

The group is looking to divest its UK development legacy portfolio, comprising five properties valued at about S$800 million as at end-2025. A few “fairly significant” divestments are in “very advanced” stages and might complete later in the year or early next year. On dividends, Kwek said the payout ratio remains unchanged at 35% of profit after tax and minority interests.