Thursday, March 6, 2014

City Development"s hotel contributions plunged 36% to $160m


Blame it on lower room inventory.



According to DBS, City Dev reported 4Q revenue of S$774.4m, bringing FY13 topline to S$3.16bn, 6% down y-o-y. 



However, 4Q net profit came in at $221m, with full year bottomline at S$683m, up 0.7% y-o-y.



Here’s more from DBS:



The improvement in net profit was due to a pre-tax divestment gain of S$160m and lower effective tax rate, partly moderated by a S$24m impairment charge on a US hotel.



The group proposed a final DPS of 8Scts, bringing full year DPS to 16Scts.



Development contributions, which accounted for 46% of PBT, was down 12% y-o-y to S$412m due to the timing of profit recognition.



This includes profit from 3 EC projects which will be recognised only on completion. Projects that lifted bottomline include Hundred Tress and Tree House.



Hotel contributions declined 36% to S$160m, impacted by a lower operating room inventory due to upgrading works despite a portfolio REVPAR growth of 3.4%.



Stripping out divestment gains, rental income would have remained relatively flat.




City Development"s hotel contributions plunged 36% to $160m

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