City Developments Limited

For H1 2020, City Developments Limited (CDL) reported a net attributable profit after tax and minority interests (PATMI) of S$3.1 million (H1 2019: S$362.0 million), reflecting the severe impact of the prolonged COVID-19 pandemic on the Group’s performance across its business segments.

The Group’s revenue for H1 2020 declined by 32.8% to S$1.1 billion (H1 2019: S$1.6 billion). The decline was across all business segments with hotel operations accounting for 82% of the drop in revenue. In constant currency, the Group’s global hotel revenue per available room (RevPAR) fell by 56.6% to S$60.3 (H1 2019: S$139.1), and global occupancy dropped to 39.4% (H1 2019: 72.2%). As at 30 June 2020, 28% of the Group’s 152 hotels worldwide were temporarily closed and those that remained open were operating at much lower occupancies than before.

The Group registered a pre-tax profit of S$13.8 million for H1 2020 (H1 2019: S$490.3 million). Its hotel operations segment recorded a substantial pre-tax loss of S$208.2 million, which included S$33.9 million of impairment losses made in view of the current pandemic.

As at 30 June 2020, the Group’s balance sheet remained robust, with cash reserves of S$2.7 billion. It maintains a strong liquidity position comprising cash and available undrawn committed bank facilities totalling S$4.0 billion. To date, this position has improved to S$5.1 billion. Net gearing ratio (after factoring in fair value on investment properties) stands at 50%.

During the unprecedented global pandemic, the Group continues to review its strategies, reinforce frameworks and futureproof its business. In line with its G-E-T strategy, the Group will progress on its plans for portfolio rejuvenation for Fuji Xerox Towers and Central Mall. It has also embarked on a thorough review of its hotel operations segment, and is actively looking into asset divestment of non-core hotels, as well as some of the investment properties held by Sincere Property Group, an established real estate developer in China that the Group holds an effective 51.01% joint controlling interest in.

Please click here for CDL’s H1 2020 financial statement.

CDL Hospitality Trusts

In H1 2020, CDL Hospitality Trusts (CDLHT) reported a net property income (NPI) of S$29.7 million (H1 2019: S$67.5 million) and revenue of S$52.1 million (H1 2019: S$93.8 million). Its portfolio was impacted by COVID-19, though the downside was partially mitigated by minimum rent and governmental relief measures.

With the exception of the New Zealand and Singapore hotels, most of CDLHT’s properties were either closed on a temporary basis or operating at low occupancies from March 2020. While international demand was absent, occupancies for the New Zealand and Singapore properties were bolstered by demand for accommodation facilities for isolation purposes. Occupancy for the Singapore hotels was also supported by demand from foreign workers affected by border closures.

The substantive contributions to the portfolio rental income from the Singapore, New Zealand and Australia hotels, amounting to S$32.1 million, partially insulated CDLHT from the severe effects of the pandemic. Overall, with the decline in NPI and absence of partial distributions of proceeds from the sale of Mercure Brisbane and Ibis Brisbane, CDLHT recorded total distribution per Stapled Security (after retention for working capital) of S$18.4 million and DPS of 1.51 cents, a decrease of 63.6% and 63.7% year-on-year respectively.

Please click here for CDLHT’s H1 2020 financial statement.

Hong Leong Finance

Hong Leong Finance (HLF) posted a net attributable profit of S$36.5 million for H1 2020, a 30.5% dip from S$52.5 million in H1 2019, taking into account the higher allowances for both non credit-impaired and credit-impaired loans raised against risk arising from the COVID-19 pandemic.

Its net interest income fell 19.7% to S$82.2 million in H1 2020, driven by the softening of yields amid the plummeting interest rates environment and slowing business momentum towards the end of Q2 2020 due to the effects of the global pandemic.

Net loan assets totalled S$11.151 billion as at 30 June 2020, down 0.7% or S$73 million over the corresponding period as at 30 June 2019. In tandem with lower loan balances, deposits and balances of customers were managed down to S$11.758 billion as at 30 June 2020, 1.5% lower compared to the corresponding period as at 30 June 2019. The Group continues to maintain strong levels of capital, funding and liquidity to ride through current market uncertainties.

Earnings per share were 16.32 Singapore cents, down from 23.55 cents in H1 2019.

Please click here for HLF’s H1 2020 financial statement.

Hong Leong Asia

Hong Leong Asia (HLA) reported net profit after tax and non-controlling interests of S$19.4 million for the six months ended 30 June 2020, a decline of 5.7% from S$20.5 million a year ago. Earnings per share stood at 2.59 Singapore cents for the first half of 2020, down from 2.75 cents a year ago.

Revenue for H1 2020 rose 4.2% to S$2.14 billion. This was mainly due to higher revenue recorded by its diesel engines unit, partially offset by the revenue decline of its building materials unit. 

HLA said continuing global uncertainties such as the threat of subsequent Covid-19 infection waves from imported cases and worsening US-China trade tensions, will impact the pace of recovery in the countries it operates.

"With the strong balance sheet and positive cash flow from operations, we are cautiously optimistic that we will be able to ride through the challenging second half of 2020," said HLA in a statement.

Please click here for HLA’s H1 2020 financial statement.