CDL bounces back with record $1.1b earnings for H122
The H122 earnings are the company's highest PATMI since 1963.
City Developments Limited posted a record net profit after tax and non-controlling interest (PATMI) of $1.1b in H122, bouncing back from a $32.1m net loss in the same period last year.
According to CDL, the H122 PATMI is the highest ever for the group since its inception in 1963.
CDL said its impressive earnings in the first half were largely due to its divestment gains from the sale of Millennium Hilton Seoul
and its adjoining land site for ₩1.1t ($1.25b) in February 2022.
Through the divestment, CDL had a pre-tax gain of $911.5m and a total gain on disposal of $526.2m, net of taxes and related transaction costs.
Apart from the divestment, gains from the deconsolidation of the CDL Hospitality Trusts from the group also drove earnings higher.
Looking ahead, CDL's Executive Chairman, Kwek Leng Beng, said the group expects hospitality to be a "star performer for the rest of the year" as COVID-19 concerns wane.
"Our hospitality portfolio will be a valuable growth engine contributing meaningfully to the Group’s recurring earning," Kwek said.
"Property investment, when viewed with a medium to long-term perspective for value appreciation, is a well-established hedge against inflation. In addition to building a solid development pipeline, the group will keep its focus on strengthening our recurring income streams," Kwek added.