City Developments reports 2021 swung to net profit

City Developments construction siteCity Developments construction site; taken October 2021

City Developments reported Friday it swung to a net profit of S$97.7 million in 2021 from a net loss of S$1.92 billion in 2020 as hotel operations returned to profitability in the second half. 

Revenue for the 12 months ended 31 December increased 24.5 percent on-year to S$2.63 billion, the property developer said in a filing to SGX.

“For 2H 2021, the group saw a jump in revenue contribution from its hotel operations segment across all regions, particularly in the U.S. and Europe, driven by accelerated global vaccine distribution and the gradual relaxation of travel restrictions,” the company said the statement.

The hotel operations returned to profitability in the second half, helped by reversals of impairment losses, the filing said.

The property development segment contributed 48 percent of total revenue, on strong performing projects in Singapore and Shenzhen, and from New Zealand land sales, the filing said.

The company said it sold 2,185 residential units for the year, with a total sales value of S$4.3 billion, its record.  

City Developments proposed a final dividend of 8 Singapore cents a share, and a special final dividend of 1 Singapore cent a share; the company also paid a special interim dividend of 3 Singapore cents a share. The company also proposed a special distribution in specie of 144.3 million units of CDL Hospitality Trusts, estimated to be valued at 19.1 Singapore cents a share. The total dividend for 2020 was 12 Singapore cents.

Outlook

City Developments issued a moderately upbeat outlook. 

“Whilst the Covid-19 pandemic persists and presents uncertainties, the overall global outlook remains positive this year with the resumption of travel, opening of borders and an overall resolution to push ahead to open economies. The group’s hotel operations segment is poised for a long-awaited imminent rebound, boosted by pent-up demand for tourism and corporate travel,” Kwek Leng Beng, executive chairman of City Developments, said in the statement.

Read more details of City Developments’ results.