CDL net profit surges 230.7% in first half on Lumina Grand recognition

SINGAPORE, 21 AUGUST 2026 —

Singapore Developers CDL, UOL Ride Strong H1 Earnings, But Analysts Turn Cautious on Property Agencies

[SINGAPORE] Singapore’s largest listed property developers, City Developments Ltd (CDL) and UOL Group Ltd, reported first-half earnings, buoyed by strong home sales, while analysts maintained an optimistic outlook on their strategic initiatives. However, sentiment toward property agencies PropNex Ltd and Apac Realty Ltd turned cautious as their revenues felt the pinch from a shrinking pipeline of new launches.

CDL’s net profit surged 230.7% year-on-year to S$301.6 million for the six months ended June 30, while UOL’s net profit rose 23% to S$252.2 million over the same period. Both developers have successfully launched high-demand residential projects in recent years, though new home sales are showing signs of moderating from the four-year high recorded in 2025. This slowdown is beginning to affect the revenues of real estate agencies, with PropNex’s net profit declining 3.1% to S$40.9 million in the first half, while Apac Realty’s net profit fell 16.8% to S$9.4 million.

CDL’s strong performance was driven by the full recognition of Lumina Grand, an executive condominium in Bukit Batok that was fully sold upon completion. The group’s hotel business also rebounded, returning to a pre-tax profit of S$42 million, compared with a S$84.4 million loss in the same period last year. CDL doubled its interim dividend to S$0.06 per share, with net gearing at 75% as of end-June.

Analysts at OCBC upgraded CDL to “buy” from “hold,” citing recent share price weakness as an opportunity, though they trimmed its fair value slightly to S$10.35 from S$10.40. Phillip Securities Research’s Darren Chan maintained a “buy” rating with a S$11.32 target, while CGS International kept its “add” call with a S$12.11 target. DBS analyst Tabitha Foo retained a “buy” rating with a S$12 target, and RHB Singapore’s Vijay Natarajan kept his “buy” call with a S$11.20 target.

CDL’s anticipated strategic review, expected to conclude by end-September, is seen as a potential catalyst for re-rating. The review could accelerate asset recycling and deleveraging, expand its fund management business, and grow recurring income alongside development exposure. Group CEO Sherman Kwek has said the review will outline the group’s future strategic direction, capital allocation framework, and implementation roadmap.

UOL also retained broad analyst support after posting a 23% year-on-year increase in net profit to S$252.2 million in the first half. DBS’ Foo maintained her “buy” rating and S$13 target, while CGSI analyst Raymond Yap kept his “add” call and S$12.83 target. OCBC’s Wong also maintained his “buy” rating, raising its fair value slightly to S$12.92 from S$12.87.

Analysts highlighted UOL’s residential pipeline as a key earnings driver, noting its continued strength in property development and investment businesses. CGSI pointed to UOL’s office and retail rental reversions of 7.3% and 5.5%, respectively, in the first half, which are expected to persist. The group’s Marina Square redevelopment, expected to add 702 residential units, is one of the most anticipated projects, with written permission from the Urban Redevelopment Authority anticipated in the third quarter.

UOL is also preparing to launch Thomson Reserve, a 1,268-unit condominium, in the fourth quarter, followed by Dorset Gardens’ 428 units in the first half of 2027 and a Hougang Central mixed-use development with over 800 residential units in the second half of 2027. The NoMad Hilton Singapore, slated to open along Orchard Road in late 2026, is expected to contribute to earnings in 2027.

In contrast, analysts were divided on PropNex after its first-half net profit fell 3.1% year-on-year to S$40.9 million, despite a 0.7% rise in revenue to S$603 million. The decline in project marketing income was offset by stronger contributions from HDB resale, landed resale, leasing, and commercial and industrial transactions. PropNex’s market share by transaction volume rose to 64.3% in the first half, from 60.6% in FY2025.

However, some analysts expect the softer project-launch pipeline to weigh on earnings in the second half. DBS’ Foo estimates that new-sale units available between April and September, expected to be recognized in H2 2026 results, will be less than half of the previous year’s volume. She also expects some projects, including the 1,000-unit Chuan Grove and several executive condominiums, to be pushed into 2027. Maybank Securities’ Eric Ong maintained his “hold” call but lowered his target price to S$1.95 from S$2, despite raising earnings estimates for 2026 to 2028 by 4-5% on expectations of further market-share gains.

FSMOne Singapore’s Charmaine Tan was more positive, maintaining her “buy” call and S$2.70 target price. She pointed to an estimated 48,000 HDB flats reaching their minimum occupation period between 2026 and 2028, calling this a “dual-commission tailwind” for PropNex. The removal of the 15-month wait-out rule for private property owners buying non-subsidised HDB resale flats could further support demand. Tan also expects higher land prices to translate into higher private-home launch prices and commissions per transaction in 2027, while a back-loaded launch calendar, with more higher-margin Core Central Region projects in the second half, could support commission margins.

Apac Realty, the parent of ERA Singapore, reported a 16.8% drop in first-half net profit to S$9.4 million, with revenue sliding 3.6% to S$329.3 million amid lower transaction volumes. Despite the weaker results, the group declared a first-half dividend of S$0.055 per share, comprising a 1.9-cent interim dividend and a 3.6-cent special dividend—the first since 2021. RHB described the special payout as a “positive surprise.”

Natarajan maintained his “buy” rating and raised his target price to S$0.74 from S$0.71, while Chan En Jie at Lim & Tan Securities kept his “accumulate” call and raised his target to S$0.68 from S$0.66. Both analysts expect Apac Realty’s second-half performance to remain broadly in line with the first half, though Chan anticipates a stronger pipeline in 2027 as delayed projects come to market. He noted that new private-home sales are forecast to reach 8,000 to 9,000 units in…

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