Recently, Singapore City Developments Limited ("CDL") released its latest results report。CDL's core net profit soars as revenue hits record high amid recovery in hotel operations。Here are five highlights from CDL's latest 2023 earnings report。

Record revenue and higher core net profit

CDL recorded an all-time high in revenue in 2023, with sales of S $4.9 billion, largely driven by the strong performance of its property development division.。Revenue growth reached 50%。If one-time gains are excluded, CDL's net profit will soar from S $47 million to 1.S $88.6 billion, up fourfold year-on-year。The property group achieved 4 in 2023.S $38.6 billion in positive cash flow, compared to a negative cash flow recorded in 2022。CDL also announced 0 per share.S $08 final common stock dividend, the same amount as paid in 2022。However, CDL paid 0 per share in 2022.08 S $special dividend, and this time no。

Singapore property sales good, launch pipeline promising

In Singapore, CDL and its joint venture partners sold a total of 730 units, including executive apartments, with a total sales value of S $1.5 billion.。This performance is below the total sales value of S $2.9 billion for 1,487 units in 2022, as the group has limited inventory in 2023.。The performance in 2023 was achieved through the launch of Tembusu Grand and The Myst, while three projects, Haus on Handy, Amber Park and Piccadilly Grand, have all sold out.。As of December 31, 2023, CDL held approximately 461 units of unsold inventory。The Lumina Grand is a 512-unit executive apartment that was launched in January 2024 and has sold 55% of its sales to date.。Upcoming projects in the second half of 2024 include Union Square Residences, Champions Way, and more。

Continued asset appreciation, reconstruction and transformation

CDL also lists a range of asset appreciation programs (AEIs) for its real estate portfolio。At the end of last year, the Jungceylon shopping centre in Phuket completed an AEI and achieved a 90% occupancy rate.。In the third quarter of 2023, CDL began a two-phase AEI project at City Square Mall to add approximately 2.60,000 square feet of net rentable area (NLA)。This AEI is expected to be completed in the first half of 2025。The group plans to rebuild Union Square to achieve a 67% increase in gross floor area (GFA) and plans to launch Union Square Residences in the second half of 2024.。There are also plans to redevelop Newport Plaza into a 45-storey freehold mixed-use development comprising retail, office, residential and serviced apartments to achieve a 25 per cent increase in gross floor area.。On the hotel side, three hotels opened last year - one M Social in Suzhou and one in Phuket, and a unique 204-room lifestyle hotel called The Singapore Edition。The Grand Copthorne Waterfront has also been remodeled, adding sustainability features and adding more than 6,200 square meters of new meeting space.。

Hotel performance is stronger

Speaking of the hotel business, CDL's hotel division has seen an improvement in performance as demand for air travel and vacations surges。In 2023, the segment's revenue increased 9% year-on-year to S $1.5 billion, while pre-tax profit (excluding sales and impairments) increased 71% year-on-year to S $55 million.。Operating statistics are encouraging。Room occupancy increased by 8 in 2023.7 percentage points to 73.1%, the average room rate per room increased by 10.4%, to 230.7 SGD。Revenue per available room (RevPAR, a commonly used metric in the hospitality industry) increased by 25.3% to 168.7 SGD。

Boost recurring revenue stream

CDL is also building and growing its recurring revenue stream in the Professional Student Housing (PBSA) and Private Rental Sector (PRS).。The combination of these two sectors forms its global portfolio of living sectors with a total development value of S $2.6 billion.。The PBSA unit has about 2,400 beds, while the PRS unit has nearly 4,800 units.。At the end of 2023, the portfolio's rental rate was above 90%。Some of the highlights of the PRS division include the acquisition of 1NQ in the UK for a total of 261 units, which is expected to be completed in 2026.。In addition, in the UK, CDL acquired Moden Wharf with a joint venture partner, which will provide approximately 1,500 residential units as well as commercial and retail space.。