Income is dragged by asset sales.
City Developments' (CDL) rental profit before tax (PBT) dipped 11% YoY due to a loss of income after it sold Exchange Tower in Bangkok and closed Le Grove for renovation, CIMB reported.
CDL is planning another renovation worth $60m for Republic Plaza from 1Q18 to 1H19. It is targeting a 10% return.
Meanwhile, occupancy of its office and retail properties still enjoys rates of 96.4% and 98.1%, respectively.
Hotel operations benefited from one-offs, but operating conditions remain challenging, particularly in New York, due to high costs, and North Asia, from geopolitical tensions.
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