City Developments Limited (CDL)

Despite the resurgence of COVID-19 infections led by the Delta variant, CDL’s business segments continued on a stable recovery trajectory.  

The Group and its joint venture (JV) associates sold 414 units with total sales value of S$784.4 million in Q3 2021. For the nine months ended 30 September 2021 (YTD Sep 2021), 1,382 units with total sales value of S$2.5 billion were sold, a 30% and 76% increase year-on-year in units sold and total sales value respectively. The total sales achieved YTD Sep 2021 have also already surpassed the Group’s FY 2020 sales performance. The strong sales were largely attributed to luxury developments Irwell Hill Residences, Amber Park, and its mid-market project Sengkang Grand Residences.

The Group’s local office portfolio has a committed occupancy of 91.5%, higher than the national average of 87.1%, while the committed occupancy for its local retail portfolio remains strong at 93.3%, above the national average of 91.9%, as at 30 September 2021.

In Australia, the Group has seen relatively healthy domestic demand for residential assets, and soft-launched its JV mixed-use development in Melbourne’s Fitzroy in October. There has been stable office leasing for its portfolio in China, with signs of rebound in Shanghai, where the Group’s Hong Leong Hongqiao Centre has reached 96% committed occupancy as at Q3 2021.

The Group’s global hospitality portfolio saw an increase in occupancy to 55.4% in Q3 2021, and a 117.1% surge in global RevPAR for Q3 2021. This was bolstered by border reopenings, easing of restrictions, and a strong demand during the summer season.

As at 30 September 2021, the Group’s net gearing ratio (after factoring in fair value on investment properties) stood at 66% with interest cover at 2.7 times. The Group has strong cash reserves of $2.5 billion. It maintains a stable liquidity position comprising cash and available undrawn committed bank facilities totalling $4.0 billion.

Please click here for CDL’s Q3 2021 operational update.

CDL Hospitality Trusts (CDLHT)

CDLHT reported an overall improvement in its year-on-year (yoy) performance, reflecting the ongoing recovery from the negative effects of the COVID-19 pandemic. Global vaccination rates increased and travel restrictions eased, resulting in more accommodation demand. CDLHT’s Q3 2021 gross revenue increased by 32.8% yoy to S$40.0 million, while net property income (NPI) increased by 34.8% yoy to S$20.5 million.

The improved NPI contribution arose mainly from its New Zealand, UK, Germany and Italy hotels and from Angsana Velavaru in the Maldives. This was however offset by lower NPI from the Singapore and Australia hotels. For Singapore, inbound visitor arrivals remained significantly lower compared to pre-pandemic levels, while the Australia hotels were affected by heavy restrictions imposed on interstate travel into Western Australia, and the absence of contribution from Novotel Brisbane, which was divested in October 2020.

For the nine months ended September 2021, CDLHT’s gross revenue increased by 29.3% yoy to S$106.2 million. NPI also rose in tandem by 27.9% to S$57.5 million for the same period, notwithstanding the loss of income due to divestments made in 2020.

Please click here for CDLHT’s Q3 2021 operational update.

First Sponsor Group Limited

For Q3 2021, First Sponsor saw strong real estate demand for its projects in Dongguan, China, but market sentiments have taken a negative turn arising from the Evergrande crisis in late September 2021. Its project Time Zone had a prelaunch on 28 August 2021 and substantially sold its first two residential apartment blocks comprising 452 units, while the sales for its third residential apartment block is moving at a slow rate since its prelaunch on 1 October 2021. First Sponsor is however cautiously optimistic on the future sales outlook in Dongguan. Three residential bocks and two SOHO blocks of the Time Zone project, comprising 1,132 units are expected to be launched progressively in the coming months.

First Sponsor is also preparing to commence the redevelopment of the Dreeftoren Amsterdam project, which will comprise residential, office and commercial, and received Stage 2 development approval of its City Tattersalls Club project in Sydney.

Despite having COVID-19 restrictions re-implemented in July 2021 following a resurgence in cases, First Sponsor saw no change to its European hotels’ demand in the traditionally strong summer quarter. Excluding the effects of subsidies, they achieved a 48% growth in earnings before interest, tax, depreciation and amortisation (EBITDA) of €3.4 million for Q3 2021. However, its two hotels in Chengdu, China were impacted, recording a lower EBITDA of RMB 1.6 million for Q3 2021, a 70% decline year-on-year.

Its PRC property financing loan book stood at RMB 2.6 billion as at 30 September 2021.

Please click here for First Sponsor’s Q3 2021 operational update.