CDL flags ‘significantly weaker’ performance for H2 2026
Certain capital-recycling divestments have not materialised; its property portfolio may see impairment losses
City Developments Ltd (CDL) has projected a "significantly weaker" financial performance for its second half of 2026, as opposed to the strong results reported in the prior year. The Singapore-based property firm disclosed this in its third-quarter business update on November 11, after unveiling a strategic review. Certain capital-recycling deals, initially expected to occur in the final half of 2026, are now anticipated to be finalised in the following fiscal year.
This shift in timing is attributed to favourable foreign exchange movements, particularly the yuan's appreciation against the Singapore dollar since July, as well as the adverse impact of an impairment loss from its property portfolio. CDL is actively pursuing divestment initiatives and optimisation opportunities in line with its capital-recycling priorities, aiming to generate S$6 billion in divestments by the end of FY2029.
The group's net gearing ratio stands at 75% as of September 30, 2026, largely due to recent acquisitions, and its interest cover is currently at 2.7 times. Despite these challenges, CDL maintains a robust liquidity position with S$2.1 billion in cash reserves and a comprehensive liquidity support network.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- CDL flags ‘significantly weaker’ performance for H2 2026 businesstimes.com.sg
