City Developments Limited (CDL)

CDL reported Q2 net profit of S$204.8 million, up 79.5% from S$114.1 million a year ago. This came on the back of a 59.2% increase in revenue for the quarter to S$1.36 billion this year from S$854 million last year. Earnings per share for the quarter ended June 30 came up to 21.8 Singapore cents, compared to 11.8 cents in the previous year.

The strong performance from the Group’s property development segment for Q2 2018 was powered mainly by three projects – New Futura and Gramercy Park in Singapore, as well as Hong Leong City Center (HLCC) in Suzhou, China. Profits were also recognised for CDL’s joint venture (JV) development Park Court Aoyama The Tower in Tokyo, Japan. The Criterion Executive Condominium (EC), which is now fully sold, achieved its Temporary Occupation Permit (TOP) in Q1 2018 and boosted revenue for 1H 2018.

According to CDL, its launched projects in Singapore performed well in 1H 2018 before the new cooling measures were announced in July. The Group, together with JV associates, sold 651 units including ECs, with total sales in 1H 2018 ringing in at S$1.29 billion. This compares with 691 units sold for a total of S$1.15 billion in 1H 2017.

For more details, view the webcast of the CDL 1H 2018 Results Briefing. 

Millennium & Copthorne Hotels Plc (M&C)

Reported hotel revenue for 1H 2018 fell 3.3% to £404 million (1H 2017: £418 million). In constant currency, hotel revenue increased 1.3%. Stronger sterling reduced revenue from overseas hotels by £19 million. Higher contributions from Millennium Hilton New York One UN Plaza (rebranded in August 2017) and M Social Auckland (opened October 2017), were partially offset by lower revenue from the Mayfair hotel and London hotels. Total revenue for the first half fell 1.6% to £477 million. In constant currency, total revenue was up 3% or £14 million.

M&C reported pre-tax profit for 1H 2018 increased £2 million to £65 million (H1 2017: £63 million). In constant currency, pre-tax profit for the period increased by £4 million. 

Group revenue per available room (RevPAR) decreased 4.3% in 1H 2018 to £75.29 (1H 2017: £78.69). In constant currency, it grew 0.5%. Like-for-like Group RevPAR increased by 2.0%. RevPAR for the Group’s London hotels was down 15.1% compared to 1H 2017 mainly because of refurbishment work at Mayfair hotel. The property was partially closed in November 2017 and completely in July 2018 to facilitate the work aimed at repositioning the hotel as the Group’s flagship within a new luxury competitive set.

Chairman Mr Kwek Leng Beng said the Group continues to be cautious about the immediate future. However, this will not affect M&C’s plan to step up investment in the hotels, which are essential to the Group’s long-term health. Looking forward, CEO Ms Jennifer Fox said that the development of a strategic plan is underway and she sees opportunity to strengthen the company.

For more details on M&C’s results, visit M&C’s investor relations website at https://investors.millenniumhotels.com/.

Hong Leong Finance (HLF)

HLF reported Q2 2018 earnings increased by 41.7% to S$29.6 million, compared to S$20.9 million. This brings 1H 2018 earnings to S$55.4 million, 48.4% higher than S$37.3 million for 1H 2017.

Annualised earnings per share for Q2 2018 was 26.53 cents, up from 18.78 cents previously.

HLF’s interest income/hiring charges increased 18.6% to S$87.3 million due to a higher average loan base and a higher loan yield. Interest expense increased by 7.5% or S$2.3 million due to higher interest payable on deposits resulting from a larger average deposits base.

Net loan assets including hire purchase receivables stood at S$10.6 billion at 30 Jun 2018, up 10.9% over the figure at 30 Jun 2017. In line with higher funding requirements, deposits and balances of customers closed at S$11.2 billion, up 9.7% from a year ago. The Group’s cash and cash equivalents at 30 Jun 2018 stood at S$1.18 billion.

Looking ahead, HLF said the Group will continue to focus on risks and compliance, even as it grows its loans selectively. 

For more details on HLF’s results, please visit 
https://www.hlf.com.sg/downloads/quarterly_report/2018/fh2018q2.pdf.

CDL Hospitality Trusts (CDLHT)

CDLHT posted a 2.9% rise in total distribution per stapled security (DPS) to 2.14 Singapore cents in the fiscal second quarter ended June 30, despite lower revenue and net property income for the period.

Revenue edged down 0.3% to S$47.7 million from S$47.8 million, while net property income was down 3.7% to S$33.6 million from S$34.9 million.

Net property income was boosted by new contributions from the Pullman Hotel Munich in Germany, whose acquisition was completed on 14 July 2017, and The Lowry Hotel, acquired on 4 May 2017. This was offset by the absence of income from two divested hotels in Brisbane, the closure of a Maldives resort for renovation in June 2018, and lower contribution from Grand Millennium Auckland due to the absence of one-off sporting events in New Zealand along with a weaker New Zealand dollar and higher property tax.

CDLHT said that with a strong balance sheet and ample debt headroom, the Group is “well-poised to actively pursue suitable acquisitions in markets with growth potential”. 

For more details on CDLHT’s results, please visit 
http://investor.cdlht.com/newsroom/CDLHT_2Q2018_PressRelease_Final.pdf.

First Sponsor Group's net profit for Q2 rose 28.9% to S$12.1 million from S$9.4 million in the period a year ago. This was despite revenue falling 21.2% to S$44.1 million, due mainly to a decline in revenue from sale of properties, offset partly by higher revenue from property financing, hotel operations and rental income.

Earnings per share for the quarter were 1.66 Singapore cents, up 15.1% from 1.44 Singapore cents previously. The Group will pay an interim dividend of one Singapore cent per share, in line with its year-ago payout.

The Group, whose property development activities focus on the Netherlands and China, noted that its China financing loan book rose 36% in the quarter to 1.6 billion yuan. The Group looks forward to the increase in profit contribution from this business segment and will continue to grow this business in a prudent manner.

For more information on First Sponsor’s results, please visit 
https://firstsponsorgroup.listedcompany.com/financials.html.