City Developments Limited
City Developments Limited (CDL) achieved record earnings with net profit after tax and non-controlling interest (PATMI) of S$1.3 billion for the full year ended 31 December 2022 (FY 2022), the highest-ever since the Group’s inception in 1963.

The stellar performance was boosted by a bountiful year of divestment gains, including the record sale of Millennium Hilton Seoul and the gain on the deconsolidation of CDL Hospitality Trusts (CDLHT) from the Group following the distribution in specie of CDLHT Units in 1H 2022, as well as the completion of the collective sales of Tanglin Shopping Centre and Golden Mile Complex in 2H 2022 where the Group owns share values and strata areas. The assets were held at book value over a long period of time, resulting in significant capital gains. This is a testament to the Group’s ability to extract value at the most opportune time, enabling strong capital recycling.

The Group’s revenue increased 25.4% to S$3.3 billion for FY 2022. Property development remained the biggest contributor, accounting for 42% of FY 2022 revenue, led by three strong-performing Singapore projects – Amber Park, Haus on Handy and Irwell Hill Residences. Spurred by the continued recovery and restored confidence in global travel, the Group’s hotel operations segment reported an outstanding performance with a 58.1% increase in revenue and a 91% growth in revenue per available room (RevPAR).

As at 31 December 2022, the Group has a sizeable war chest with cash reserves of S$2.4 billion, and cash and available undrawn committed bank facilities totalling S$4.1 billion.

For FY 2022, the Board is recommending a final ordinary dividend of 8.0 cents per share and a special final ordinary dividend of 8.0 cents per share. Together with the special interim ordinary dividend of 12.0 cents per share paid in September 2022, the total cash dividend for FY 2022 amounts to 28.0 cents per share (FY 2021: cash dividend of 12.0 cents and 20.2 cents from the distribution in specie of CDLHT Units, totalling 32.3 cents).

Mr Kwek Leng Beng, Executive Chairman of CDL, said, “The Group is pleased to deliver a sterling set of results for FY 2022, driven by prudent divestments and strong operational performance from our core business segments. Notably, our hotel operations made an outstanding rebound, having recovered in most markets to pre-pandemic levels. Riding on the return of corporate travel and unabated pent-up demand for leisure travel, our hospitality segment will continue to strengthen and is poised to be a star performer for the year ahead. A key focus for our hospitality portfolio will be to accelerate plans for asset optimisation, alignment to the Group’s sustainability goals and driving growth.

This year marks CDL’s Diamond Jubilee. Over the past 60 years, the Group has weathered many economic storms, property cycles and unprecedented disruptions, but we have always tackled the odds head-on and successfully emerged stronger. We will continue to apply this same discipline and tenacity to bring CDL to greater heights.”

Mr Sherman Kwek, Group Chief Executive Officer of CDL, said, “Amidst all the challenges and disruptions we have faced over the past three years, we have continued to steadfastly execute on our Growth, Enhancement and Transformation (GET) strategy that we unveiled in 2018, growing our traditional development and investment portfolio, both locally and overseas, as well as expanding strongly into the living sector to bolster our recurring income and create potential fund management opportunities. We have embraced capital recycling and unlocked latent value via well-timed divestments and various asset enhancement initiatives. All the while, we have been managing our capital prudently, reducing our gearing and strengthening our cash. While market uncertainties persist, CDL will continue to display discipline, agility, resilience and innovation so as to deliver sustainable growth and maximise long-term shareholder value.”

For CDL’s full FY2022 results, click here.

CDL Hospitality Trusts
CDL Hospitality Trusts (CDLHT) experienced positive momentum in rate growth across all the portfolio markets driven by the continued recovery in global travel in second half of 2022 following the easing of pandemic-related travel restrictions and restoration of public confidence.

On the back of accelerated global travel recovery with most countries treating the coronavirus as a stable endemic situation, most of CDLHT’s portfolio markets experienced robust performance growth in FY 2022. Driven by higher revenue achievement, NPI increased by 43.7% or S$37.6 million year on year to S$123.7 million for FY 2022. The higher NPI was largely attributed to the Singapore portfolio and UK hotels, which increased collectively by S$43.3 million year on year (including a S$3.5 million inorganic contribution from Hotel Brooklyn) for the reporting year. These increases were offset by lower NPI from the New Zealand Hotel, which declined by S$11.2 million year on year.

Total distribution to Stapled Securityholders (after retention for working capital) for FY 2022 was S$69.7 million and DPS was 5.63 cents, representing an increase of 32.6% and 31.9% yoy respectively. On a same-store basis, excluding the capital distribution of S$12.5 million in FY 2021 from sale proceeds of past divestments, total distribution and DPS for FY 2022 would have improved by 74.0% and 72.7% year on year respectively.

As at 31 December 2022, CDLHT’s total portfolio value increased by 6.2% or S$163.7 million year on year to S$2.8 billion, mainly due to the Singapore portfolio, the inclusion of Hotel Brooklyn and construction progress of The Castings.

CDLHT’S portfolio comprises 19 operational properties, including a total of 4,821 rooms and a retail mall, and one Build-to-rent project in the pipeline with 352 apartment units. The properties include six hotels in Singapore, a retail mall – Claymore Connect, two hotels in Perth, Australia, two hotels in Tokyo, Japan, three hotels in United Kingdom, one hotel in Munich, Germany, one hotel in Florence, Italy, one hotel in Auckland, New Zealand and two resorts in Maldives.

For CDLHT’s full FY 2022 results, click here.

Hong Leong Finance

Hong Leong Finance (HLF) has seen an annual net profit of 54.3% increase from FY 2021 to S$130.9 million in FY 2022, as net interest income gained 36.1% to S$242.2 million. The Group’s full-year fee and commission income grew 46.3% to S$16.4 million on more lending activities. In the half year ended on 31 December 2022, HLF achieved an 113.7% increase from the same period in FY 2021, a rise in net profit to S$85.8 million, from S$40.1 million in FY 2021.

In 2022, the Group recorded strong loan growth and an uplift in its asset yields, which outpaced a higher cost of deposits amid the ongoing interest rate hikes. Earnings per share stood at 38.28 Singapore cents for the half-year period ended 31 December 2022, up from 17.93 Singapore cents the same period in the previous year.

Net allowances for loans and other financial assets were lower at $0.9 million for the second half-year period, due to lower allowance for credit-impaired loans than in the same period last year.

The Group is recommending a final dividend of 13.25 Singapore cents per share, up from the 8.25 Singapore cents per share in FY 2021.

The Group expects 2023 will be a year of normalisation amid cyclical headwinds. Hong Leong Finance Chairman, Mr Kwek Leng Beng, said the group will continue to focus on sourcing strategic opportunities, accelerating digital adoption and innovation, and exercising financial prudence.

For HLF’s full FY 2022 results, click here.

Hong Leong Asia

Hong Leong Asia’s (HLA) posted attributable net profit of S$54.5 million for the full year ended 31 December 2022 (“FY2022”). Group revenue was S$3.9 billion, a decrease of 21.3% year-on-year, impacted by the diesel engines unit (“Yuchai”) but partially offset by revenue growth from the building materials unit (“BMU”) in Singapore and Malaysia (“Tasek”).

HLA’s 2022 profitability was impacted by a lower volume of engine sales in China as well as higher input costs across BMU in Singapore and Malaysia.

Revenue of Yuchai declined 26.3% year on year to S$3.3 billion, with reportable segment profit after tax of S$67.0 million, representing a decline of 21.8% year on year. Lower sales volume negated improved gross margins and reduced expenses. The total number of engines sold by Yuchai in FY2022 decreased 29.7% to 321,256 units compared with 456,791 units in FY2021, with the rate of decline in engines sold moderating in the second half of FY2022. COVID-19 restrictions impacted the markets for commercial vehicles as well as marine and power generation engines in China.

The BMU revenue increased 24.3% year on year to S$585.4 million, with reportable segment profit after tax of S$45.6 million, representing a growth of 61.9% year on year as construction activities in Singapore recovered and drove demand for concrete and precast products as well as profit contributions from an associate, BRC Asia Limited (20% equity stake). While the operating environment for Tasek had improved, operations remained challenging with weak concrete volumes as well as higher input costs and tight credit conditions.

HLA shared that it will focus on strengthening its capabilities to execute new growth strategies, improving supply chain resilience, and strengthening its market position. It is also working closely with partners to develop solutions and increase innovation efforts with customers to address climate change issues. With a conservation balance sheet and net cash position, the Group is cautiously optimistic that its business will perform satisfactorily in 2023.

The Board of Directors has proposed a first and final dividend of S$0.02 per share, subject to shareholders’ approval at the forthcoming annual general meeting on 26 April 2023.

For HLA’s full FY 2022 results, click here.