CDL Group FY 2025 Financial Results: Strong Capital Recycling and Record Shareholder Returns

The FY 2025 results presentation for CDL Group showcases a year marked by disciplined capital management, robust execution on divestments, and a record-setting performance in property development and shareholder returns. Below, we break down the key metrics, performance drivers, and strategic highlights from the financial report.

Key Financial Metrics & Year-on-Year Performance

Revenue grew across all segments, with property development leading the increase. EBITDA and PBT saw strong gains, mainly driven by capital recycling and exceptional property development profits. PATMI surged due to significant divestment gains and strong project sales, despite \$155MM in impairments and foreseeable losses for overseas properties.

Dividend Policy and Shareholder Returns

CDL Group delivered a record total shareholder return (TSR) of 62% in FY 2025, powered by a robust share price increase and a special interim dividend. The Board announced an enhanced dividend policy, committing to at least one cash dividend annually with a payout ratio of ≥35% of reported PATMI. The total dividend for FY 2025 was 28 cents per share, up 180% from the previous year.

Segmental Performance & Asset Management

• Property Development: Achieved record Singapore residential sales value of \$4.35B (up 46.6% YoY), with 1,657 units sold and 13% market share. Major launches like The Orie and Zyon Grand were 95% and 87% sold, respectively.
• Investment Properties: Capital recycling gains were substantial, notably from the \$1.38B divestment of South Beach, yielding \$473.1MM in gains. Commercial portfolio maintained high occupancy rates: Singapore office at 97.8%, retail at 97.6%, and UK commercial at 91.1%.
• Hotel Operations: Revenue grew 1.7% YoY, with RevPAR up 1.3% and two major hotel revamps completed in Penang and New York. EBITDA and PBT increases were largely driven by capital recycling gains.

Historical Performance Trends

CDL Group has consistently focused on disciplined capital recycling, with divestments outpacing acquisitions. The company achieved its highest-ever residential sales value and market share in Singapore. Asset values and NAV continued to climb, and the gap between NAV and RNAV narrowed due to crystallized gains.

Asset Revaluation and Accounting Practices

Investment properties are stated at cost less accumulated depreciation and impairment losses. No fair values are adopted, which may understate asset values versus market pricing.

Exceptional Earnings and Expenses

FY 2025 saw exceptional capital recycling gains, particularly from the South Beach divestment. Impairments and foreseeable losses totaling \$155MM were recorded for overseas assets.

Divestments and Asset Sales

• Major divestments included South Beach, generating \$473.1MM in gains.
• Contracted divestments in FY 2025 totaled ~\$2B.
• Strategic investments focused on new Singapore GLS sites and UK hotel acquisitions.

Macroeconomic and Regulatory Environment

Despite an extension of Singapore’s Seller’s Stamp Duty to a 4-year holding period, buyer confidence remained strong post-policy change. Lower interest rates boosted demand, and Singapore residential prices rose 3.3% YoY in 2025.

Shareholder Actions and Corporate Events

• No mention of share buybacks, dilution, placements, or mandates.
• No material legal disputes, natural disasters, or unusual fund flows disclosed.

Forecasts and Outlook

CDL Group expects continued strong performance in property development, recurring income growth from stabilised assets, and resilient demand across core markets. The Singapore hotel portfolio is poised for recovery, with international arrivals rising and a robust events pipeline. Overseas markets will benefit from refurbishments and new developments.

Chairman’s Statement

“We aim to be recognised by customers, employees and peers as an innovative creator of quality and sustainable spaces.”

The tone is strongly positive, underscoring innovation, prudent risk-taking, and sustainable returns.

Conclusion & Recommendation

CDL Group’s FY 2025 performance is robust, marked by record profits, exceptional shareholder returns, disciplined asset management, and resilience across segments. The outlook remains strong, with a strengthened dividend policy and continued focus on value creation.

• If you are currently holding CDL Group stock: The company’s fundamentals and dividend policy are strong, and the outlook is positive. Consider holding your position to benefit from future growth and recurring income.
• If you are currently not holding CDL Group stock: CDL Group presents a compelling case for investment, with proven capital recycling, resilient earnings, and attractive dividends. Consider initiating a position, especially as the company has demonstrated consistent outperformance and strategic execution.

Disclaimer: This article is based strictly on the FY 2025 financial report and does not constitute investment advice. Investors should consider their own risk tolerance and consult professional advisers before making any investment decisions.

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