“Despite the macroeconomic challenges in the global real estate sector, the CDL Group demonstrated resilience in 2024 across all our key business segments. While higher financing costs and construction delays for certain projects affected profits, we have secured gains from our well-sold residential projects which will be recognised progressively, and our hospitality portfolio continues with a steady momentum, boosted by the strategic additions of the Hilton Paris Opéra and the Sofitel Brisbane Central hotels. Our strong fundamentals, healthy balance sheet and diversified portfolio will enable us to navigate the landscape with agility and confidence, focused on executing our strategies, fulfilling our commitments and seizing opportunities to deliver value to our stakeholders.” KWEK LENG BENG Executive Chairman As of 31 December 2024, the Group maintained a robust capital position with cash reserves (net of overdraft) of $2.8 billion, and cash and available undrawn committed bank facilities totalling $4.5 billion, ensuring sufficient liquidity to fulfil our working capital and financial obligations. After factoring in fair value on investment properties, the Group’s net gearing ratio stands at 69% (FY 2023: 61%), mainly due to acquisitions in 2024, such as the Zion Road land tender in Singapore, the Hilton Paris Opéra hotel in France and five Private Rented Sector (PRS) properties in Japan. Net Asset Value (NAV) per share stood at $10.17 (FY 2023: $10.12) as of 31 December 2024. The Group adopts the policy of stating our investment and hotel properties at cost less accumulated depreciation and impairment losses. Had the Group factored in fair value gains on our investment properties, its Revalued NAV (RNAV) per share would have been $17.57 (FY 2023: $17.21). Had the revaluation surpluses of our hotels been included, the Group’s RNAV per share would be $19.86 (FY 2023: $19.46). CHAIRMAN’S STATEMENT Dear Shareholders, For FY 2024, the CDL Group reported a net profit of $201.3 million (FY 2023: $317.3 million) – a resilient performance despite a challenging macroeconomic environment. The Group’s profit was largely impacted by the timing of profit recognition from its property development segment, due to construction delays in certain projects and elevated financing costs. Revenue decreased by 33.8% to $3.3 billion (FY 2023: $4.9 billion) due to lower contributions from the property development segment. Notably, in 2023, the segment had substantial revenue contributions such as a $1.0 billion from its joint venture (JV) Executive Condominium (EC) project, Piermont Grand which was recognised in entirety when the project obtained its Temporary Occupation Permit (TOP) and a JPY 50 billion ($495.0 million) divestment of the freehold land site in Shirokane, Tokyo. Our investment properties and hotel operations segments showed resilient performance, with an increase of 11.1% and 8.2% in revenue respectively for FY 2024. CITY DEVELOPMENTS LIMITED 14 OVERVIEW
RkJQdWJsaXNoZXIy ODIwNTc=