Singapore’s property market has shown remarkable resilience despite global economic shifts.
As we look back at the 2025 fiscal year, two of the Straits Times Index’s (SGX: ^STI) heaviest hitters – City Developments Limited (SGX: C09) and UOL Group (SGX: U14) – have released earnings that underscore the strength of the local residential and hospitality sectors.
Investors closely watching the real estate space will find much to digest, from massive capital recycling gains to strategic landbank replenishment.
Both companies have managed to navigate a high-interest-rate environment while rewarding shareholders with significantly higher dividends.
City Developments Limited: A Record Year of Capital Recycling
City Developments Limited, or CDL, delivered a powerhouse performance for the full year ended 31 December 2025 (FY2025), with revenue climbing 9.7% year on year (YoY) to S$3.6 billion.
This growth was largely underpinned by its property development segment, where Singaporean projects like The Myst and Union Square Residences acted as primary engines.
However, the standout figure was the net profit attributable to owners, which tripled to S$629.7 million.
This surge was primarily driven by a massive S$473.1 million gain from divesting a 50.1% stake in the South Beach development, showcasing management’s ability to unlock value through capital recycling.
From a balance sheet perspective, CDL remains well-capitalized with S$2.1 billion in cash, though it carries S$13.4 billion in interest-bearing borrowings.
A positive highlight for income seekers was the reduction in average borrowing costs from 4.4% to 3.7%.
Although free cash flow was a negative S$2.0 billion due to aggressive land acquisitions in Shanghai and Singapore, the underlying operating cash flow remained healthy at S$0.9 billion when excluding those investments.
Shareholders were rewarded with a total dividend of S$0.280 per share, including a special interim dividend, representing a 40% payout ratio.
With the launch of the ultra-luxury Newport Residences in early 2026, CDL is positioning itself to capture the premium end of the market as interest rates begin to moderate.
UOL Group: Robust Operations and Strengthening Balance Sheets
UOL reported an exceptionally strong set of results for FY2025, with revenue jumping 16% YoY to S$3.2 billion.
The star of the show was the property development arm, which saw a 26% revenue spike thanks to progressive recognition from popular projects like Pinetree Hill and MEYER BLUE.
Not to be outdone, the property investment segment grew 13% to S$629.3 million, aided by the acquisition of 388 George Street in Sydney and the revitalized Singapore Land Tower.
These operational successes filtered down to the bottom line, with operating PATMI surging 49% to S$468.7 million.
Financially, UOL remains one of the most conservatively managed blue chips.
Total borrowings fell 11% to S$4.5 billion, and the group’s net gearing ratio improved to a very comfortable 0.20 times.
This fiscal discipline allowed the board to propose a total dividend of S$0.25 per share, a generous 39% increase from the previous year.
Looking forward, UOL has been busy securing its future pipeline by replenishing its landbank with three new sites, including Thomson View and Hougang Central.
With the NoMad Hilton Singapore set to open in late 2026 and the massive Marina Square transformation on the horizon, UOL is blending steady rental income with high-growth development potential.
Get Smart: The Value of Patience and Pipelines
The stellar results from CDL and UOL demonstrate that high-quality developers can thrive even when the macro environment is complex.
For investors, the key takeaway is the importance of a deep project pipeline and a disciplined approach to debt.
While CDL focuses on aggressive capital recycling to boost its returns, UOL continues to lean on its rock-solid balance sheet and hospitality recovery.
Both companies are signaling confidence through higher dividends, suggesting that the “higher-for-longer” rate environment hasn’t dampened their long-term growth trajectories.
Some companies cut dividends in a downturn. These 5 didn’t.
Find out which Singapore blue chips have weathered past chaos…and why they could be your portfolio’s anchors in the next wave of downturn. Download the report free.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: The Smart Investor does not own shares in any companies mentioned.
