FINANCIAL REVIEW For FY 2025, the Group tripled its net profit after tax and noncontrolling interest (PATMI) to $629.7 million from $201.3 million in FY 2024. The notable performance was driven by robust residential sales in Singapore coupled with strong capital recycling gains, especially the sale of the 50.1% stake in the South Beach mixed-use development in Singapore. Revenue increased 9.7% to $3.6 billion for FY 2025 (FY 2024: $3.3 billion). The property development segment was the largest contributor, with revenue rising 24.1% for FY 2025. The increase was supported by higher contributions from Singapore projects such as The Myst, Norwood Grand and Union Square Residences, as well as by the sale of the Ransome’s Wharf site in London and the office component of Hong Leong City Center in Suzhou, China. The investment properties segment also recorded a 2.7% increase in revenue for FY 2025, mainly driven by City Square Mall in Singapore and Jungceylon Shopping Center in Phuket, both of which completed extensive asset enhancement initiatives (AEIs). The hotel operations segment posted a 1.7% increase in revenue and a 1.3% rise in Revenue Per Available Room (RevPAR) for FY 2025. Pre-tax profit doubled to $771.5 million for FY 2025 from $374.0 million in FY 2024. The doubling of pre-tax profit in FY 2025 was driven by increased revenue from all three core business segments and substantial capital recycling gains. The property development segment delivered a robust performance, anchored by the steadfast execution of the Group’s construction projects in Singapore. Developments that contributed to FY 2025 profits included The Myst, Norwood Grand, CanningHill Piers, The Orie and Tembusu Grand. The investment properties segment was the largest contributor to pre-tax profits, generating $357.8 million, boosted by gains from the Group's active capital recycling initiative. Divestments included the South Beach office and retail components, as well as Bespoke Hotel Osaka Shinsaibashi, 1250 Lakeside in Sunnyvale, City Industrial Building, the retail component of Hong Leong City Center, a strata-titled car park with 82 lots at The Venue Shoppes, Piccadilly Galleria and strata units at Fortune Centre. The Group’s hotel operations segment also reported a healthy pre-tax profit of $256.0 million for FY 2025 (FY 2024: $193.4 million), bolstered by capital recycling gains from the sale of JW Marriott Hotel Singapore South Beach, part of the South Beach mixed-use development in Singapore, as well as the sale of Comfort Inn Near Vail Beaver Creek in the US. Property Development Revenue increased by $226.5 million to $1,165.9 million for FY 2025 (FY 2024: $939.4 million). Correspondingly, pre-tax profit increased by $163.3 million to $181.8 million for FY 2025 (FY 2024: $18.5 million). Projects that contributed to both revenue and profit in FY 2025 included The Myst, Norwood Grand, Union Square Residences, Sunshine Plaza, Brickworks Park in Australia, Ransome’s Wharf and Teddington Riverside in London, Hongqiao Royal Lake in Shanghai, apartments and the office component of Hong Leong City Center, as well as New Zealand land sales. In accordance with the Group’s equity accounting policy for joint ventures (JVs), revenue from JV developments such as Copen Grand, Kassia, CanningHill Piers, Tembusu Grand, The Orie and Piccadilly Grand is not consolidated into the Group’s total revenue. However, the Group's share of profit arising from these JV developments is recognised in pre-tax profit. The increase in revenue for FY 2025 was driven primarily by higher contributions from The Myst, Norwood Grand and Union Square Residences, partially offset by lower contributions from Irwell Hill Residences and Hong Leong Technology Park in Shenzhen. In addition, the sale of Ransome’s Wharf and the office component of Hong Leong City Center also boosted revenue for FY 2025. Pre-tax profit for FY 2025 included an $80.5 million allowance for foreseeable losses, largely in relation to two commercial properties in China. Investment Properties Revenue for this segment increased by $13.3 million to $512.9 million for FY 2025 (FY 2024: $499.6 million). Correspondingly, pre-tax profit soared by $211.7 million to $357.8 million for FY 2025 (FY 2024: $146.1 million). The increase in revenue was largely due to Republic Plaza, City Square Mall, Jungceylon Shopping Center, as well as higher contributions from the living sector in the UK and Japan. These were partially offset by lower contributions from industrial buildings following the divestment of these properties. The substantial increase in pre-tax profits was due to higher capital recycling gains. In FY 2025, the Group recognised gains from the disposal of its 50.1% stake in South Beach Tower, South Beach Avenue and South Beach Quarter, Bespoke Hotel Osaka Shinsaibashi, 1250 Lakeside, Piccadilly Galleria, 100% equity sale of CityInd Pte. Ltd. (which held City Industrial Building) and several strata units in Fortune Centre. In FY 2024, the Group recognised gains from the divestment of the Group’s entire equity stake in Cideco Pte. Ltd. (which owned Cideco Industrial Complex) and the disposal of strata units in Citilink Warehouse Complex, Cititech Industrial Building and Fortune Centre. 82 | CITY DEVELOPMENTS LIMITED
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