CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 BUSINESS OVERVIEW 80 81 FINANCIAL REVIEW OPERATIONS AND MARKET REVIEW Revenue by Business Segment ($ million) 966 640 361 1,255 873 341 141 157 Property Development Hotel Operations Investment Properties Others Profit Before Tax by Business Segment* ($ million) 245 24 (740)^ (573)^ (575)^ (71) 97 30 Property Development Hotel Operations Investment Properties Others * Includes share of after-tax profit/(loss) of associates and joint ventures. ^ Includes net loss from Sincere Property of $1.78 billion – Property Development $0.96 billion – Hotel Operations $0.11 billion – Investment Properties $0.71 billion Property Development Hotel Operations Investment Properties Others 2020 2021 Revenue by Business Segment Profit Before Tax by Business Segment* $228 MILLION 0 EBITDA by Business Segment 13% 11% 107% (31)% 6% 13% 48% 33% $2.6 BILLION 16% 10% 28% 46% $707 MILLION The global health pandemic continued to unfold in 2021. However, most businesses had advanced on their digitalisation and automation journeys since 2020 and were able to adapt to the disruption more swiftly. TheGroupwas no exception and navigated the business and operational challenges adroitly, with all business segments delivering a resilient performance for the year. PROPERTY DEVELOPMENT Singapore Property sales momentum was resilient in 2021, driven by sustained pent-up demand with many homebuyers seeking better homes and supported by a low interest rate environment. For FY 2021, the Group and its joint venture (JV) associates sold 2,185 units including Executive Condominiums (ECs), with a total sales value of $4.3 billion – the highest annual property sales achieved in the Group’s history (FY 2020: 1,318 units with a total sales value of $1.8 billion). The robust sales performance for the year was largely attributed to the Group’s successful launch of two high-profile projects and sustained steady sales of its existing inventory. Healthy sales were also achieved for its existing inventory, with Piermont Grand EC andWhistler Grand – launched in 2019 and 2018 respectively – now fully sold. In April, the Group launched its 540unit Irwell Hill Residences, located near the upcoming Great World MRT station. To date, 418 units (77%) have been sold at an average selling price (ASP) of over $2,670 per square foot (psf)#. In November, the Group and its JV par tner Capi taLand Development launched the 696-unit CanningHill Piers, the res ident ial component of i ts mega i ntegrated pro j ect l ocated along the Singapore River. The mixeduse development, directly linked to Fort Canning MRT station, comprises CanningHill Square with F&B and retail outlets, a 475-room Moxy Hotel and a 192-unit Somerset Serviced Residence. The response was overwhelming with 538 units (77%) snapped up over the launch weekend, achieving sales value of $1.18 billion, making CanningHill Piers the best-selling project launch in the Central Area for 2021. The 8,956 sq ft Super Penthouse – the project’s sole penthouse unit – was sold for $48 million ($5,360 psf). To date, 595 units (86%) have been sold at an ASP of over $2,990 psf#. Project Location Launched Total Units Units Sold# ASP Achieved Boulevard 88* Orchard Boulevard March 2019 154 127 >$3,770 psf Amber Park* Amber Road May 2019 592 524 >$2,465 psf Haus on Handy Handy Road July 2019 188 51 >$2,800 psf Piermont Grand EC* Sumang Walk July 2019 820 820 $1,109 psf Nouvel 18+ Anderson Road July 2019 156 122 >$3,330 psf Sengkang Grand Residences* Sengkang Central November 2019 680 655 >$1,725 psf Penrose* Sims Drive September 2020 566 543 >$1,600 psf * JV project # As of 20 February 2022 + Divested project marketed by CDL CanningHill Piers I Singapore Artist’s Impression In February, The Tapestry, the Group’s fully sold 861-unit project at Tampines Avenue 10 obtained its Temporary Occupation Permit (TOP). Construction activities in most project sites have gradually improvedwith the Government’s aid to bring in migrant workers more expeditiously amid the severe labour shortage in the sector. To replenish its landbank, the Group part icipated in Government Land Sales (GLS) and private tenders. Apart from the two GLS sites acquired in 1H 2021 with its JV partner MCL Land at Northumberland Road and Tengah Garden Walk, the Group entered into an off-market agreement to acquire a 179,007 sq ft residential development parcel at 798 and 800 Upper Bukit Timah Road for $126.3 million. The transaction is expected to complete in 1H 2022. Subject to planning approval, the site will be redeveloped into two 24-storey blocks with over 400 units. Healthy Sales for Existing Inventory of Projects Launched in 2019 and 2020
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