City Developments reported Tuesday its third quarter net profit dropped 33.7 percent on-year to S$114.96 million on costs related to delisting Millennium & Copthorne Hotels PLC and on lower revenue.
Revenue for the quarter ended 30 September declined 12.9 percent on-year to S$885.30 million, due to the timing of revenue recognition for property development projects, the property developer said in a filing to SGX.
Administrative expenses rose 4 percent on-year to S$143.04 million, mainly on higher depreciation due to changes to accounting for leases and from investment properties, the filing said.
Other operating expenses increased 66 percent on-year to S$182.33 million largely on the S$36.9 million impairment loss on Millennium Hilton Seoul and Millennium Hilton New York One UN Plaza, owned by the group’s 65 percent-owned subsidiary, Millennium & Copthorne Hotels PLC and one-off costs incurred for the successful privatisation of M&C in October, City Developments said.
“Although the Singapore property market continues to face challenges arising from a supply overhang, CDL’s residential launches in Singapore have achieved relatively healthy sales. This reflects the underlying demand for homes with compelling value propositions that are anchored down by strong locations, high quality standards and outstanding design,” Sherman Kwek, group CEO of City Developments, said in the statements.
“In the meantime, we continue to accelerate our global expansion, purchasing both development sites and investment properties in our core overseas markets of U.K., China, Japan and Australia. These highly selective acquisitions will support the crystallisation of our fund management ambitions and help to grow our recurring income,” Kwek added.
City Developments declared a special interim dividend of 6 Singapore cents an ordinary share and a preference dividend of 1.94 Singapore cents a preference share, unchanged on-year.