CDL flags ‘significantly weaker’ performance for H2 2026

Detailed summary

Certain capital-recycling divestments have not materialised; its property portfolio may see impairment losses

Certain capital-recycling divestments have not materialised; its property portfolio may see impairment losses

[SINGAPORE] Fresh from announcing the roll-out of a comprehensive strategic review, City Developments Ltd flagged that it expects to post a “significantly weaker” financial performance for its second half ending Dec 31.

Certain capital-recycling deals that the Kwek-controlled group had earlier expected to materialise in the rest of FY2026 are now expected to be completed in FY2027, it said in a third-quarter business update on Wednesday (Nov 11).

This comes “in contrast to” the second half of 2025, when the group reported a capital-recycling gain of S$473.1 million from the divestment of South Beach Consortium.

CDL added that the anticipated weaker H2 performance is “compounded by adverse foreign exchange movements, particularly the appreciation of the Korean won against the Singapore dollar since July”.

The group is also currently undertaking valuations of its property portfolio, which it noted “may give rise to impairment losses”.

As at Sep 30, its China office portfolio “continued to face market challenges”. The group said that it is “actively pursuing divestment initiatives and optimisation opportunities in line with its capital-recycling priorities”.

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The property giant had at end-September unveiled a plan focused on capital recycling and deleveraging, targeting S$6 billion in divestments by FY2029 to recycle capital from mature, non-core or underperforming assets.

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