SINGAPORE (Aug 11): City Developments has announced a 17.9% drop in 2Q17 earnings to $109.9 million from $133.8 million in 2Q16.
In a separate filing, CityDev has announced it has accepted the resignation of CEO Grant Lewis Kelley who will leave at end December.
Current deputy CEO Sherman Kwek will be appointed as CEO-designate of the company from today.
CityDev says Kelley will be “taking up new challenges as the CEO of a listed company based in Melbourne, Australia, which offer is timely as he returns home to Australia for personal reasons”.
For the 2Q17 ended June, revenue fell 21.8% to $854.1 million compared to $1.09 billion the previous year.
CityDev says the higher earnings and revenue in 2Q16 were underpinned by the contribution from Lush Acres Executive Condominium (EC). Excluding this contribution, which obtained Temporary Occupation Permit (TOP) in 2Q16, the group’s revenue and earnings would have increased by 15.7% and 43.4% respectively for 2Q17.
For 2Q17, PATMI and revenue were driven by contribution from well-received projects including Gramercy Park, Coco Palms and The Venue Residences, coupled with continued profit recognition from Hongqiao Royal Lake, Shanghai and Hong Leong City Center (HLCC), Suzhou when the units were handed over to buyers progressively. With improved market sentiments, ahead of the Additional Buyer’s Stamp Duty deadline, The Venue Residences is fully sold.
As at 30 June 2017, the group’s net gearing ratio, without considering revaluation surplus from investment properties, remained low at 16% with interest cover at 10.6 times. The group’s balance sheet also remained robust with cash and cash equivalent of S$3.5 billion.
The board is declaring payment of a tax-exempt (one-tier) special interim dividend of 4.0 cents per ordinary share, which will be paid out on September 13, 2017.
Kwek Leng Beng, CDL Executive Chairman, says, “CDL is well poised to benefit from an upcycle. In addition to strong residential sales, we will also benefit from monetisation opportunities to unlock value through potential collective en-bloc prospects for some of our mature assets, as well as possible divestment or repurposing of our non-core properties.”
Kelley says, “Looking ahead, we are focused on deploying our war chest for land bank replenishment in Singapore and our key target markets, opportunistic acquisitions, strategic equity investments and external collaborations.”
The Board is declaring payment of a tax-exempt (one-tier) special interim dividend of 4.0 cents per share.
Shares in CityDev closed 13 cents lower at $11.67 on Thursday.
