The luxurious 188-unit Haus on Handy is among CDL’s five residential projects in Singapore that was fully sold and completed in 2023. Pictured is the rare heritage bungalow on the property that has been converted into “Club Haus”, a club house that offers an array of facilities.
Hong Leong
Companies
Report
Full Year
Earnings
For 2023
City Developments Limited (CDL)
CDL achieved record revenue of S$4.9 billion (FY 2022: S$3.3 billion) for the full year ended 31 December 2023 (FY 2023), primarily driven by the stellar performance of its property development segment.
The Group achieved a lower net profit after tax and non-controlling interest (PATMI) of S$317.3 million (FY 2022: S$1.3 billion), largely due to higher financing costs in FY 2023 and the absence of substantial divestment gains recorded in the prior year arising from the sale of Millennium Hilton Seoul, the deconsolidation of CDL Hospitality Trusts (CDLHT) as well as the completion of the collective sales of Tanglin Shopping Centre and Golden Mile Complex.
Mr Kwek Leng Beng, Executive Chairman of CDL, said, “The CDL Group delivered a resilient set of results despite an extremely challenging year for the global real estate sector, with a high interest rate environment, inflation, weak global economies and geopolitical tensions. Singapore’s additional property cooling measures added to the challenges. However, the Group seized opportunities to expand our portfolio, optimise operational efficiencies, refurbish assets and strengthen synergies across the Group’s business segments to enhance
performance and drive value extraction. Though headwinds persist, we will embrace 2024 with cautious optimism, confident of our ability to navigate the changing landscape of the real estate sector.”
The Board recommends a final ordinary dividend of 8.0 cents per share. Together with the special interim dividend of 4.0 cents per share, paid out in September 2023, the total dividend for FY 2023 amounts to 12.0 cents per share, representing a dividend payout ratio of 36%.
Please click here for the full CDL FY 2023 results.
CDL Hospitality Trusts (CDLHT)
According to CDLHT, W Singapore – Sentosa Cove was among the five hotels that achieved record full year RevPAR. Pictured is the W Lounge that was part of the hotel’s recent transformation.
Recovery in global travel continued in 2H 2023, which led to positive momentum in RevPAR growth across virtually all the portfolio markets. For 2H 2023, net property income (NPI) increased 3.7% (or S$2.7 million) year-on-year (“yoy”) to S$75.5 million in tandem with the 5.8% yoy increase in gross revenue. Improvement was recorded throughout the portfolio except for lower NPI from Singapore and Perth.
As at 31 December 2023, CDLHT’s total portfolio value increased by 7.8% or S$231.4 million yoy to S$3.2 billion. On a same store basis, excluding UK BTR, the total portfolio value increased by 5.5% or S$159.6 million yoy, mainly driven by higher valuation of the Singapore portfolio. These revaluation gains do not have any impact on the distribution to Stapled Securityholders.
Mr Vincent Yeo, Chief Executive Officer of CDLHT’s managers, said, “While international travellers from China have yet to fully return, global travel continued to recover in 2023. In Singapore, our core market, the hospitality sector witnessed remarkable growth in the first three quarters of 2023, building on the momentum of the strong rebound in 2022. In the final quarter, the pent-up demand that fuelled the industry's resurgence began to normalise, in contrast to the fervour experienced in 2022.”
Total distribution to Stapled Securityholders (after retention for working capital) for 2H 2023 was S$39.8 million and DPS was 3.19 cents, a decrease of 10.7% and 11.1% yoy respectively, due to higher interest costs.
Please click here for the full CDLHT FY 2023 results.
HLF reported net profit of S$93.4 million for the full year 2023.
HLF reported full year 2023 net profit of S$93.4 million driven by total operating income of $212.3 million at net interest margin of 1.5%, a decline of 28.7% as compared to its record net profit 2022 of $130.9 million at net interest margin of 1.8%.
Balance sheet remained strong with robust capital adequacy ratio at 16.3% to support lending activities and ample liquidity buffer above regulatory requirement to withstand market uncertainties. Asset quality remained stable with NPL ratio at new low at 0.5%.
Dividend payout moderated to shore up capital and bolster financial resilience in the light of market uncertainties; commit to sustainable return to shareholders with dividend payout ratio at 60%.
HLF said it will remain prudent and committed in driving sustainable business growth and practices, fostering product and technology innovation and delivering value to all our stakeholders. In alignment with our strategic vision and backed by a robust corporate governance, we are confident in our ability to navigate the evolving business landscape through customer-centric value propositions and sustainable return to shareholders.
Please click here for the full HLF FY 2023 results.
Hong Leong Asia (HLA)
HLA reported 19% rise in FY2023 earnings due to strong recovery from Tasek
HLA recorded net profit attributable to Shareholders of S$64.9 million for the full year ended 31 December 2023 (“FY 2023”), up 19.0% from FY 2022. Group revenue increased 5.2% YoY to S$4.1 billion, underlined growth for both powertrain solutions (“Yuchai”) and building materials units (“BMU”). There was a sharp revenue growth in BMU as Tasek recorded a strong recovery.
Net Profit Attributable to Shareholders grew 19.0% YoY to S$64.9 million, helped by
better margins as well as improved contributions from joint ventures and associates.
Yuchai recorded improved results as China’s market gradually recovered post lifting of
Covid-related restrictions. Yuchai revenue grew 4.3% YoY to S$3.4 billion, with reportable segment profit after tax of S$76.5 million, up 14.1% YoY.
First and final dividend of S$0.02 per share, subject to shareholders’ approval.
HLA said it will continue to collaborate with partners and customers to develop and deliver sustainable and innovative urban solutions for cities of the future.
Please click here for the full HLA FY 2023 results.
