City Developments Ltd., run by Singapore’s richest real estate empire, posted a 94% drop in its first-half profit, as the absence of divestment gains booked a year earlier masked strong results in the firm’s property development and hotel businesses.

Net income fell to S$66.5 million ($49 million) in the six months ended June 30 from a record S$1.1 billion a year earlier, it said in a statement on Thursday. Revenue surged 84% to S$2.7 billion, with the property development segment the biggest contributor.

“The record profit performance last year, driven by significant divestments, provided us with the significant cash to make strategic acquisitions that would add value to our portfolio,” Chief Executive Officer Sherman Kwek said in a statement. “We remain focused on extracting value from our current assets while pursuing our fund management ambitions.”

Surging home prices and rents have helped developers in Singapore, though the frenzy is now showing signs of moderating after the government doubled stamp duties for foreign homebuyers and as interest rates climb. The easing of global travel restrictions has boosted the retail and hospitality industry.

The firm’s property development segment saw revenue jump 183%, underpinned by new launches including the fully sold Piermont Grand.

Revenue from hotel operations advanced 12%, with the performance of Asia, Europe and US regions exceeding pre-pandemic levels.

The Singapore developer is likely to continue to benefit from the travel boom, which the city-state has credited for ruling out a recession this year. While the company faces headwinds in the second half, due to a global economic slowdown and rising interest rates, the outlook for Singapore’s aviation and tourism sectors remains positive, according to the government.