CDL sells more homes but achieves lower sales value in Q1

Lower quantum compared to prior year due to less pricey units sold as majority are in mass to mid-market segments

Wed, May 13, 2020

Ng Ren Jye


CITY Developments Limited (CDL) and its joint-venture associates sold 185 homes worth S$278.1 million for the first three months ended March 31, compared to 173 units valued at S$516.3 million in the same period last year.

The lower quantum in sales value was due to residential units that were less pricey, as a majority of the units sold were in mass to mid-market projects such as Piermont Grand, Whistler Grand and The Tapestry. In contrast, the units sold in the same period last year were mainly in ultra-luxury projects such as Boulevard 88.

CDL also noted a significant slowdown in new home sales for its launched projects in China, the UK and Australia as local governments imposed lockdowns in response to the Covid-19 pandemic.

Separately, its global hospitality portfolio, mainly comprising its wholly-owned subsidiary Millennium & Copthorne Hotels, has been "severely impacted by closures following lockdowns imposed by local governments", CDL said.

As at March 31, about 30 per cent of the group's 152 hotels globally were temporarily closed.

All 10 of its Singapore hotels remain operational but revenue per available room (RevPAR) declined 28.8 per cent due to lower occupancy.

CDL said its Singapore hotels focused on corporate and public-sector businesses to mitigate the impact of low occupancy. Several of its hotels are being used to house those affected by recent events such as Malaysia's border closure, and people returning from overseas to serve their stay-home notices.

"These initiatives have helped to sustain occupancy rates in Singapore, allowing hotels to maintain a breakeven position in April," CDL said.

Its Q1 RevPAR for Asia was down 37.2 per cent, the steepest decline among all regions, mainly due to the hotels in Beijing, Taipei and Seoul.

As for investment properties, its Singapore office portfolio had a committed occupancy of 90.9 per cent for the quarter, versus islandwide occupancy of 89 per cent, CDL said.

In retail, about 80 per cent of its 426 tenants in Singapore are not operating due to "circuit-breaker" measures.

The listed landlord had previously announced additional rebates for June and July, raising its rental relief kitty to S$23 million. It added that it would be passing on the full quantum of the government's property tax rebates to its retail tenants, as well as those in non-residential properties such as offices and industrial buildings.

It has also provided rental rebates to tenants in China and Thailand.

For the first quarter, CDL's net gearing ratio stood at 44 per cent, with cash reserves of S$3.3 billion.

For the S$1.8 billion in loans due for the remainder of 2020, the group has refinanced 17 per cent and set aside funds for the repayment of 65 per cent, with the balance of 18 per cent scheduled for renewal in Q3 2020.

CDL shares closed down 0.75 per cent at S$7.96 on Tuesday.