CDL joins CLI in guiding for lower FY2023 earnings

Core operating earnings have not been significantly impacted

City Developments expects to report a "substantial decrease" in earnings for its FY2023 ending December. 

Besides an absence of an exceptional gain and higher financing costs, the property company attributes the lower earnings to further impairments it is likely to make on its UK assets.

"Nevertheless, the group’s overall business performance and core operating earnings have not been significantly impacted compared to the previous financial year, and the group expects to remain profitable for FY2023," says CDL on Nov 21.

For the year ended Dec 2022, CDL reported earnings of $1.3 billion, marking a record for the company, which celebrated its 60th anniversary.

Besides all-round operating improvements, a one-off gain of more than $500 million from the sale of Millennium Hilton Seoul helped set the record. 

Just a fortnight earlier, another local property company, CapitaLand Investments, had similarly sounded a profit warning.

Citing possible fair value losses on its portfolio, CLI expects to report a "significant decrease" when it reports its FY2023.

Both companies expect to report their FY2023 results in February.

CDL closed Dec 21 at $6.41, up 0.79%; CLI closed at $2.94, unchanged for the day.