Sustainability Report 2015

Market Review and Performance

We assess our market performance beyond our financial bottom line. Apart from strong earnings and shareholder returns, our capacity to create a positive impact on our community forms part of the wider economic value we create for the society.

For the year ended 2014, the Group achieved its highest ever revenue of $3,764 million, up 17.1% from 2013. CDL’s profit after tax and non-controlling interests also increased by 12.2% to $770 million. Basic earnings per share increased from 74.0 cents restated for 2013 to 83.2 cents for 2014.

The various Singapore government cooling measures, in particular, the Total Debt Servicing Ratio (TDSR) framework and Additional Buyer’s Stamp Duty (ABSD), have adversely impacted both sales volumes and prices of residential units. According to data from the Urban Redevelopment Authority (URA), developers sold 7,316 private residential units, excluding Executive Condominiums (ECs) – a significant drop of 51.1% in 2014 compared to 2013. If ECs are included, developers sold 8,894 units – a fall of 52.0% compared to previous year.

In general, property consultants share the view that sentiment will remain negative in 2015, with private home sales volume expected to hover around 7,000 to 8,000 units.

Despite the tough market conditions, CDL, together with our joint venture associates, sold 1,378 units including ECs at a value of about $1.4 billion, maintaining the Group’s position as Singapore’s top-selling private developer for 2014 (2013: 3,210 units with total sales value of $3.32 billion).

Key Financial Information

YEAR 2010(3) 2011 2012 2013(3) 2014
Revenue $3,103 m $3,280 m $3,354 m $3,213 m $3,764 m
Income tax paid $106 m $162 m $204 m $135 m $115 m
Staff costs $664 m $647 m $665 m $705 m $763 m
Profit before income tax $1,067 m $1,136 m $960 m $948 m $1,004 m
Profit for the year attributable
to owners of the Company
$784 m $799 m $678 m $686 m $770 m
Return on equity 12.5% 11.7% 9.3% 8.9% 9.2%
Net asset value per share $6.89 $7.51 $8.03 $8.50 $9.25
Basic earnings per share 84.8 cents 86.4 cents 73.2 cents 74.0 cents 83.2 cents
DIVIDENDS
Ordinary dividend (gross)
per share
         
- final 8.0 cents(1) 8.0 cents(1) 8.0 cents(1) 8.0 cents(1) 8.0 cents(2)
- special interim - 5.0 cents(1) - 8.0 cents(1) 4.0 cents(1)
- special final 10.0 cents(1) 5.0 cents(1) 5.0 cents(1) - 4.0 cents(2)
Preference dividend (net)
per share
3.90 cents(1) 3.90 cents(1) 3.90 cents(1) 3.90 cents(1) 3.90 cents(1)

Notes:
(1) Dividends declared were tax-exempt (one-tier).
(2) Final and special final tax-exempt (one-tier) ordinary dividends for the financial year ended 31 December 2014 were approved by the ordinary shareholders at the Annual General Meeting held on 22 April 2015.
(3) Certain accounting policies or accounting standards had aligned in the financial years 2011 and 2014. Only the financial information above presented for each of the years immediately preceding 2011 and 2014 had been restated to reflect the relevant changes in accounting policies or accounting standards.