City Developments Limited (CDL) recorded a 32.8 percent decline in its net profit in Q2 2014 from $205 million in Q2 2013 to $138 million.
However, its core earnings (excluding divestment gains in H1 2013) increased by 89.7 percent to $137.9 million in Q2 2014 against $72.7 million for the same period last year.
Its revenue also increased from $813 million in Q2 2013 to $861 million in Q2 2014.
Property development was the main contributor to the group’s earnings, and profits were booked in from fully or substantially sold projects that are recognised based on stages of construction.
Profits from Coco Palms and Commonwealth Towers have yet to be recognised as they are either in early stages of construction or site works have not yet begun. Additionally, profits from three fully sold Executive Condominiums (ECs) can only be recognised in entirety upon completion of construction.
CDL Executive Chairman Kwek Leng Beng said, “CDL’s business model is evolving, with growth focused on new geographies and products. We will accelerate our overseas expansion initiatives to supplement existing operations. We remain optimistic but cautious in our approach to new markets.”
He added the company aims to establish its platforms in Japan and Australia by the end of 2014.
In Singapore, the group plans to launch its New Futura (pictured) project in District 9 in 2H 2014, subject to market conditions. The 36-storey freehold project comprises two towers with 124 units.