This article first appeared on GuruFocus .
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Revenue:Group revenue rose 61% year-on-year to SGD 2.7 billion for 1H 2026, up from SGD 1.7 billion in 1H 2025.
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EBITDA:Increased 25.9% to SGD 694 million.
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Profit Before Tax (PBT):Roughly tripled to SGD 404 million, up 189% year-on-year.
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Profit After Tax and Minority Interests (PATMI):More than tripled to SGD 302 million, up 230% year-on-year.
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Property Development Revenue:Surging 167% year-on-year, becoming the largest revenue contributor.
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Hotel Revenue:Increased 6.4% year-on-year, supported by a 4.9% growth in RevPAR.
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Investment Properties Revenue:Increased 3.2% year-on-year, despite divestments.
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Net Finance Costs:Decreased significantly by 47% to SGD 145 million.
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Hotel Operations PBT:Reversed from a loss of SGD 84 million in 1H 2025 to a profit of SGD 42 million in 1H 2026.
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Gearing:Stood at 75%, an increase of 4% from December 31, 2025.
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Interim Dividend:Declared SGD 0.06 per share, double the dividend declared for 1H 2025.
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue surged over 60% and PATMI more than tripled (up 230%) in H1 2026, driven by strong Singapore property development segment.
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Hotel segment delivered a 6.4% revenue increase with broad-based RevPAR growth across all regions, including a 14% rise in Australasia.
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Interim dividend doubled to $0.06 per share, reflecting commitment to a minimum 35% dividend payout ratio.
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Strong liquidity position with $2 billion cash and $4.9 billion committed undrawn credit facilities, providing ample financial headroom.
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Strategic review approved unanimously by the Board, with a concrete plan to reduce gearing and enhance capital recycling, to be unveiled at end of September.
Negative Points
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Gearing increased to 75% due to GLS acquisitions and CapEx, which management acknowledged as high and uncomfortable.
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Capital recycling gains were notably absent in H1 2026, with divestments delayed by geopolitical and market uncertainties.
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U.K. PBSA portfolio underperformed with a yield on cost of only about 4%, impacted by structural challenges and lower foreign student demand.
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Net finance costs, though reduced, remain significant at $145 million, and interest rate environment poses refinancing risks.
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Property development profits are inherently lumpy, with H2 2026 expected to be weaker than H1 due to project completion schedules.
Q & A Highlights
Q: Can we expect a more accelerated pace of capital recycling over the next 6 to 12 months, and which assets are in the pipeline? A: Group CEO Sherman Kwek stated that divestments will be weighted more in the second half of this year, though some significant deals in advanced stages may close next year. He confirmed that the legacy U.K. land bank, previously valued at $800 million, is certainly on the cards for divestment. He emphasized that capital recycling is a core part of CDL's DNA going forward, and more details will be shared at the strategic review unveiling at the end of September.
Q: What is the reason for the delay in the strategic review, and has it been approved by the Board? A: Sherman Kwek confirmed that the Board unanimously approved the strategic review yesterday. The delay is due to management's desire to ensure every number shared is properly backed up by a concrete implementation roadmap and asset makeup. He noted they are still tweaking final parts and preparing materials, with the full unveiling scheduled for the end of September.
Q: Given the elevated GLS pricing, will you continue to look at GLS or en bloc sites, and has your stance on participating in the EC market changed? A: Sherman Kwek said CDL will continue to participate in GLS tenders in a disciplined manner, mindful of maintaining an optimal pipeline size to avoid overexposure. While en blocs are not the preferred method due to their lengthy process, they remain an option for well-located assets at acceptable pricing. Regarding ECs, the new rules will moderate bid prices, but CDL will continue to participate with adjusted bids.
Q: Can you share the CapEx and yield on cost for the Newport and Union Square office redevelopments, and are you prepared to undertake more redevelopment projects? A: CFO Yim Ming Yiong revealed the project development costs are approximately $1.1 billion for Newport and $0.9 billion for Union Square, based on market land values at transfer, with remaining commitments now sub-$400 million. Sherman Kwek confirmed CDL is willing to undertake more redevelopments, citing City House under the CBD incentive scheme and a potential Delfi/Orchard Hotel project under the strategic development incentive scheme, but stressed they don't want too many concurrent redevelopments due to lost rental income and heavy CapEx.
Q: What is your sense of the Singapore property market now, and do you see new launch prices hitting $4,000 psf? A: Sherman Kwek described the market as having entered a stabilized phase, with year-to-date price growth of 1.4% and a projected full-year growth of 2% to 3%, which he views as healthy and aligned with government expectations. COO Eik Sheng Kwek added that the $4,000 psf benchmark is not high, as some Orchard Boulevard properties already exceed $5,000 psf, and luxury high-end projects will cross $4,000, though it won't become the norm.
Q: If divestment gains don't come through, is there a risk that the full-year dividend will be lower than the previous year? A: Sherman Kwek clarified that the dividend policy is based on a minimum 35% payout ratio of PATMI. While the ratio has a floor, the absolute amount could decline if PATMI falls short of last year's levels without capital recycling gains. He confirmed the company will pay out whatever the PATMI is, with or without divestment gains.
Q: What are your thoughts on the hotel portfolio, and where is the greatest opportunity within the hotel business? A: COO Eik Sheng Kwek highlighted the benefit of CDL's diversified hotel portfolio, which allowed other regions to offset weaker performance areas. He noted that Gateway City hotels have historically been the winning formula, providing strong demand and capital appreciation, as seen with past divestments like Millennium Seoul Hilton and Bespoke Osaka. Sherman Kwek added that hospitality will remain a key part of the business, though the portfolio may get streamlined.
Q: Can we have an update on the fund management segment and the living sector portfolio, particularly the U.K. PBSA segment? A: Sherman Kwek stated that fund management will play a much bigger role going forward, with current AUM of about SGD 4 billion primarily from CDLHT and IREIT, and plans to substantially grow this. On the living sector, he noted Japan PRS is performing exceptionally well with strong rental growth, U.K. PRS is improving, but U.K. PBSA has been a drag with a yield on cost of only about 4%, impacted by structural challenges and fewer Chinese students. He confirmed CDL is reassessing whether to expand, shrink, or divest the PBSA portfolio.
Q: What are the key indicators tied to the share performance plan, and is there a maximum limit on shares issued each year? A: Sherman Kwek stated that the KPIs have not been released publicly but are tied to the long-term goals of the company and will be aligned with the strategic review KPIs going forward. CFO Yim Ming Yiong added that the dilution impact is immaterial, as shares are issued from treasury shares bought back, and the amounts are not significant.
Q: Should CDL issue cheaper perps to pay off more expensive U.K. debt, given the yield on cost from PBSA doesn't cover U.K. borrowing costs? A: CFO Yim Ming Yiong explained that while cross-currency swaps and SGD borrowing could offer a 1% to 1.2% savings, this leaves currency risk that could easily tip over the savings. She noted that perps are typically priced about 1% higher than traditional debt, making them less attractive. Given the clear intention to divest U.K. legacy assets, she prefers to maintain the current approach and give the divestment process time over the next 1-2 years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
