CDL Group 1H 2025 Financial Results: Resilience Amidst Volatility

CDL Group, a leading international property and hospitality conglomerate, released its 1H 2025 results, revealing resilient performance despite macroeconomic headwinds and currency fluctuations. This article analyzes key financial metrics, recent strategic initiatives, operational highlights, and provides recommendations for investors.

Key Financial Metrics: 1H 2025 Performance Overview

Historical Performance Trends

• Revenue has shown consistent growth, up 8% YoY, driven by significant divestments, notably the Ransome’s Wharf site in the UK and Suzhou Hong Leong City Center in China.
• EBITDA grew 21% YoY, reflecting resilient property development performance and successful recycling efforts.
• PBT declined 10% YoY, primarily due to net foreign exchange losses of \$63.1MM versus a gain of \$51.3MM in 1H 2024, largely from USD-denominated intercompany loans.
• PATMI rose 3.9% YoY, supported by higher property development contributions and full profit recognition from Copen Grand EC.
• NAV per share declined marginally due to preference share buybacks, fair value losses on interest rate swaps, and translation losses from foreign operations.
• Special interim dividend increased to 3.0 cents/share, up from 2.0 cents/share a year ago.

Strategic Initiatives & Divestments

• Capital recycling remains a priority: Over \$1.5B in contracted divestments year-to-date, exceeding new investments.
• Major asset divestments include the 50.1% stake in South Beach (Singapore), City Industrial Building, Piccadilly Galleria, and notable US hotel assets.
• Land replenishment: Acquired Lakeside Drive GLS site for \$608MM; top bidder for two EC GLS sites in August 2025.
• Resilient committed occupancy in Singapore office and retail sectors (97%), and strong living sector occupancy in Japan (95%), UK PBSA (90%), and UK PRS (80%).

Segmental Performance Highlights

Capital Position and Asset Management

• Net gearing (including fair value): 70% (slightly up from 69% in FY 2024).
• Interest cover ratio improved to 2.4x from 2.1x.
• 43% of debt on fixed rates (up from 38%); average borrowing cost fell to 4.0% from 4.4%.
• Strong natural hedge across key currencies (~74% coverage), helping mitigate FX volatility.

Operational Highlights

• Singapore property development: Sold 903 units worth \$2.2B in 1H 2025, led by The Orie launch (92% sold).
• Commercial occupancy in Singapore remains very high (Office & Retail: 97%).
• International expansion continues, with new PRS, PBSA, and hospitality assets in Australia, UK, Japan, and China.
• Hotel operations: RevPAR rose 0.5% YoY, but Singapore hotels suffered a sharp 13.6% decline due to absence of major events and shipping sector challenges. Australasia and Europe recorded double-digit RevPAR growth thanks to new acquisitions.
• Ongoing refurbishments (St. Regis Singapore, M Social New York Downtown, M Social Knightsbridge London) and new developments (M Social Resort Penang, M Social Sunnyvale).
• CDL Hospitality Trusts’ net property income dropped 11.9% YoY, mainly due to renovation-related disruptions and softer performance in Singapore.

Chairman’s Statement

No explicit Chairman’s Statement was included in this report. The overall tone of management’s commentary throughout reflects a cautious optimism, highlighting resilience, disciplined capital management, and continued portfolio optimization despite macroeconomic and currency headwinds.

Other Notable Corporate Actions and Events

• Preference share buybacks contributed to NAV decline.
• Active capital recycling; divestments outpaced acquisitions YTD.
• No mention of legal disputes, natural disasters, or abrupt regulatory changes impacting the business in the period covered.
• Dividend payout increased YoY, reflecting management’s confidence despite near-term challenges.
• Ongoing asset enhancement initiatives across the portfolio to boost long-term value and occupancy.
• Continued recognition in global ESG and sustainability indices, with multiple awards in 2025.

Conclusion & Investment Recommendation

CDL Group’s 1H 2025 results demonstrate resilience and disciplined execution in asset recycling, portfolio optimization, and capital management. Revenue and EBITDA growth are robust, and the special interim dividend hike is a signal of confidence. However, macroeconomic volatility, FX losses, and softer hotel performance in Singapore remain concerns.

• If you currently hold CDL Group stock: The fundamentals remain solid and management is actively mitigating risks while maintaining capital returns. Hold your position, especially if your investment horizon is medium-to-long term. Consider reinvesting dividends, but monitor FX risks and hospitality sector recovery closely.
• If you are not currently holding CDL Group stock: Consider accumulating on price dips, particularly since the company is executing well on capital recycling and portfolio enhancement. However, remain cautious and watch for sustained improvement in the hospitality segment and macro conditions before building a large position.

Disclaimer: This article is based solely on the company’s disclosed financial information and should not be construed as personalized investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence or consult a licensed advisor before making any investment decisions.

View CityDev Historical chart here