CDL shares slide more than 10% after warning of ‘significantly weaker’ H2 performance

Résumé détaillé

Delayed asset sales, foreign exchange losses and potential impairments weigh on outlook

Delayed asset sales, foreign exchange losses and potential impairments weigh on outlook

[SINGAPORE] Shares of City Developments Limited (CDL) fell as much as 10 per cent at market open on Thursday (Nov 12), a day after the property group warned that it expects to post a “significantly weaker” financial performance in the second half of FY2026, citing delayed capital recycling transactions, adverse foreign exchange movements and potential property impairments.

As at 9.04 am, CDL shares fell 10.1 per cent to a one-year low of S$6.40, before paring losses to trade 6.9 per cent lower at S$6.63 by 9.30 am.

CDL said certain capital recycling transactions originally envisaged for the remainder of FY2026 are now expected to be completed in FY2027, amid persistent inflationary pressures and elevated interest rates.

This contrasts with the second half of 2025, when the group recorded a capital recycling gain of S$473.1 million from the divestment of South Beach Consortium in September that year.

The anticipated weaker performance in H2 2026 is also compounded by adverse foreign exchange movements, particularly the appreciation of the Korean won against the Singapore dollar since July.

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CDL said the currency movements had resulted in significant foreign exchange losses at its Korean subsidiary on an intercompany loan receivable denominated in Singapore dollars.

The group is also conducting valuations of its property portfolio, which could result in impairment losses.

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