City Developments Limited (SGX: C09), or CDL, is a real estate company listed on the Singapore market that has a presence in 28 countries and regions. Its business segments within the real estate market include property development, hotel operations, rental properties, and others.
In the last six months though, CDL’s stock price has swooned by 7%. Let’s have a quick look at some of its key earnings from its half-year report to understand if the decline makes sense.
Let’s start with some numbers. For the quarter ended 30 June 2019, CDL reported a 26.4% decline in net profit to S$162.4 million. This decline in earnings was largely due to the timing of profits which can only be recognised upon project completion and not progressively. This leads to lumpy earnings for the group.
While earnings were muted on a quarterly basis, on a half-year basis CDL reported an 18.3% increase in profits to S$362 million.
Summarising the sales, CDL and its JV associates sold a total of 505 units amounting to S$1.55 billion in the first half of 2019. This was the contribution from sales across multiple projects such as Boulevard 88, Amber Park, New Futura, South