The largest contribution to the net profit came from the unwinding of CDL’s Profit Participation Securities (PPS 2) structure, which achieved pre-tax deferred gains of S$153.9 million from the divestment of Manulife Centre and 7 & 9 Tampines Grande, and a gain of S$43.3 million from CDL’s stake in PPS 2.
Profit from two well-received luxury joint-venture (JV) projects, South Beach Residences and Boulevard 88, also contributed to the positive results.
As at 30 June 2019, the Group’s balance sheet remained robust, with cash reserves of S$3.3 billion and a net gearing ratio of 44% (without factoring any revaluation surplus from investment properties).
The Board also declared payment of a tax-exempt (one-tier) special interim dividend of 6.0 cents per ordinary share.
Heathy residential sales
In 1H 2019, CDL and its JV associates sold 505 residential (including Executive Condominiums) units in Singapore for S$1.55 billion.
In China, CDL’s wholly-owned subsidiary CDL China Limited and its JV associates sold 347 residential units in 1H 2019, achieving a total sales value of RMB 1.08 billion (approximately S$213 million).
Driving growth and recurring income
CDL has continued to execute several strategies to drive growth and recurring income. These include the takeover bid for Millennium & Copthorne Hotels plc; the transformational partnership with Sincere Property Group; the investment in IREIT Global; and the acquisition of prime properties in Australia, China, Japan as well as the non-residential components of PPS 1.
Mr Sherman Kwek, Group Chief Executive Officer of CDL, said, “We have focused on executing our GET strategy of Growth, Enhancement and Transformation. By creating strong value propositions and timing our launches strategically, we have achieved healthy sales for our residential projects in Singapore. At the same time, we have further diversified overseas through transformational initiatives such as our partnership with Sincere to expand CDL’s presence in China and achieve sustainable growth there.”
“Increasing recurring income via acquisitions, asset enhancement initiatives and our fund management strategy is another priority. We will continue to grow, diversify, innovate, transform, as well as forge new alliances.”