Singapore property group City Developments Limited (CDL) expects weaker H2 FY2026 performance as delayed disposals and possible impairment losses coincide with its push to lower gearing by FY2029, The Straits Times reported.
In September, CDL set a S$6 billion divestment goal and a 55% gearing target for FY2029. That target represents an estimated 20-percentage-point reduction from the company’s net gearing of 75% at Sept. 30. CDL attributed much of that ratio to H1 purchases of two government land-sale sites. It reported S$2.1 billion in cash reserves and S$4.8 billion in cash plus available committed credit facilities, and said it saw no material risk to near-term debt payments. The company also reported interest cover of 2.7 times and described its debt-maturity schedule as healthy.
Operating data offered a counterpoint to the weaker outlook. In Q3, CDL and its joint-venture associates sold 124 homes in Singapore for S$322.6 million, compared with 88 homes totaling S$313.2 million a year earlier. CDL said the quarter had no new launches and sales came largely from developments already on the market. Global hotel revenue per available room increased 6.4% to S$175.20 in the first nine months of FY2026, from S$164.60 in the year-earlier period.
CDL said some capital-recycling transactions it had expected to close during the rest of FY2026 are now expected to complete in FY2027. A S$473.1 million capital-recycling gain from the South Beach Consortium sale had boosted H2 2025. The company also cited less favorable foreign-exchange movements, including the Korean won’s appreciation against the Singapore dollar since July.
CDL was conducting valuations of its property portfolio, which it said could produce impairment losses. At Sept. 30, its China office portfolio remained under market pressure. The company said it was pursuing asset sales and optimization across its portfolio as part of its capital-recycling strategy.
