City Developments Limited Delivers Record Performance Through Strategic Asset Recycling March 17, 2026
City Developments Limited, a prominent Singapore-based property developer, has reported exceptional FY25 results that significantly exceeded market expectations. The company operates across property development, hotel operations, and investment segments, maintaining a diversified portfolio spanning Singapore, the UK, China, and other international markets.
Outstanding Financial Performance
The company achieved remarkable FY25 PATMI of S$630 million, representing a substantial 213% year-on-year growth that came in 88% above our estimates. This exceptional performance was primarily driven by strong Singapore residential sales and significant capital recycling gains from approximately S$2 billion in divestments during FY25, including the notable sale of its 50.1% stake in South Beach.
Revenue growth was strong with gross revenue reaching S$3.587 billion compared to S$3.271 billion in FY24, marking a 9.7% increase. The property development segment was the primary growth driver, supported by higher contributions from Singapore projects and strategic divestments including the Ransome’s Wharf site in London and the office component of Suzhou Hong Leong City Centre in China.
Record Residential Sales Achievement
The company delivered record-breaking residential sales performance in FY25, with the Group and its joint venture associates selling 1,657 units (including Executive Condominiums) valued at S$4.35 billion. This represents the highest sales volume in the company’s history, significantly surpassing FY24’s performance of 1,489 units worth S$2.97 billion. The strong momentum was particularly driven by successful launches of The Orie and Zyon Grand, which achieved impressive take-up rates of 95% and 87% respectively.
Enhanced Shareholder Returns and Future Outlook
City Developments has revised its dividend policy to establish a minimum payout of 35% of reported PATMI, providing greater clarity for shareholders. The company declared a final dividend of 25 cents per share, bringing total FY25 dividends to 28 cents per share, representing a 40% payout ratio.
Phillip Securities Research maintains a BUY recommendation with a higher RNAV target price of S$11.32, increased from the previous S$9.62, implying a 25% discount to the revised RNAV of S$15.09. The research house raised its RNAV by 17% after accounting for recent investments, divestments, and higher valuations of the living sector portfolio.
Strategic Portfolio Optimisation
Looking ahead, the company has outlined plans for continued asset recycling, with immediate intentions to exit its legacy UK portfolio valued at approximately S$800 million, comprising development sites and residential projects. A strategic review is currently underway, with updates expected by mid-2026. The company is also exploring fund management initiatives that could involve recycling non-core assets into private funds.
With a robust development pipeline of 1,820 units, including the recently secured Tanjong Rhu Road site and the planned Lakeside Drive site launch in 2026, City Developments appears well-positioned to maintain its strong residential sales momentum into FY26.
Frequently Asked Questions
Q: What were City Developments’ key financial highlights for FY25?
A: The company achieved FY25 PATMI of S$630 million, representing 213% year-on-year growth and exceeding analyst estimates by 88%. Gross revenue reached S$3.587 billion, up 9.7% from the previous year.
Q: What drove the exceptional performance in FY25?
A: The strong results were primarily driven by robust Singapore residential sales and substantial capital recycling gains from approximately S$2 billion in divestments, including the sale of the company’s 50.1% stake in South Beach.
Q: How did the company perform in residential sales?
A: City Developments achieved record residential sales in FY25, selling 1,657 units valued at S$4.35 billion through the Group and its joint ventures, the highest in the company’s history. Key projects The Orie and Zyon Grand achieved 95% and 87% sales respectively.
Q: What is the company’s dividend policy?
A: The company has revised its dividend policy to a minimum of 35% of reported PATMI, which includes gains from divestments. For FY25, a final dividend of 25 cents per share was declared, bringing total dividends to 28 cents per share.
Q: What is Phillip Securities Research’s recommendation?
A: Phillip Securities Research maintains a BUY recommendation with a target price of S$11.32, increased from S$9.62, implying a 25% discount to the revised RNAV of S$15.09.
Q: What are the company’s future plans for asset management?
A: The company plans to exit its legacy UK portfolio worth approximately S$800 million and is conducting a strategic review with updates expected by mid-2026. Fund management initiatives may involve recycling non-core assets into private funds.
Q: What is the outlook for residential sales?
A: Strong residential sales momentum is expected to continue into FY26, supported by a robust development pipeline of 1,820 units, including the recently secured Tanjong Rhu Road site and the planned Lakeside Drive site launch in 2026.
Q: Which business segments contributed to the growth?
A: The property development segment was the primary growth driver, benefiting from higher contributions from Singapore projects and strategic divestments. The hotel operations and investment segments also contributed to the overall performance.
This article has been auto-generated using AI tools. It is based on a report by a Phillip Securities Research analyst.
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About the author
Darren Chan
Darren has over seven years of experience across both the buy-side and sell-side. During his tenure as a fund manager, he managed multiple funds and mandates, including dividend income, growth, customised, Singapore-focused, and regionally focused strategies. He holds a First-Class Honours degree in Banking and Finance from the University of London.
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