GuocoLand has reported a higher top line for its FY2025 ended June 30, with both development and investment revenue growing.
However, due mainly to allowance made for its development properties in China, earnings for the year was down 17% to $107 million over the preceding FY2024.
Despite lower earnings, GuocoLand plans to pay a final dividend of 7 cents. In the five preceding years, it paid a consistent 6 cents each.
“Both our twin engines of property development and property investment in Singapore have contributed to our strong performance for FY2025, despite pervasive macroeconomic uncertainties," says group CEO Cheng Hsing Yao.
"We expect our businesses in Singapore to stay resilient going forward."
In its FY2025, GuocoLand booked property development revenue of $1.56 billion, up 3% y-o-y, due to progressive recognition of sales from substantially sold residential developments in Singapore.
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Revenue from its property investment segment in FY2025, relative to development, was a smaller quantum of $281 million. However, this segment grew more strongly by 22% over FY2024, thanks to higher rental revenue from Guoco Tower and Guoco Midtown.
As at June 30, both Guoco Tower and Guoco Midtown achieved close to 100% occupancy; 20 Collyer Quay, another office property, achieved a commitment rate of 98%.
Its retail spaces at Guoco Tower, Guoco Midtown and the newly-completed Guoco Midtown II all maintained 100% commitment rate as at June 30.
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The company has been seeing strong demand for its residential developments in Singapore, with Midtown Modern selling out in FY2025.
Its projects in the Lentor Hills estate also performed well – Lentor Modern was fully sold in FY2025, while Lentor Hills Residences, Lentor Mansion and the most recently launched Lentor Central Residences were all substantially sold as at June 30.
Beyond the Lentor Hills estate, GuocoLand launched Springleaf Residence earlier this month. The 941-unit development was already 92% sold over the launch weekend.
However, the picture in China is less rosy. GuocoLand warns that China's property market continues to be challenging due to the ongoing consolidation, as well as economic headwinds caused by geopolitical and trade tensions.
The company has made allowance for foreseeable losses for development properties of $82.8 million in FY2025, a reduction from $103.8 million in FY2024.
"While development earnings are more cyclical in nature, depending on the timing of land acquisitions and project launches, GuocoLand’s investment portfolio provides steady recurring income," says Cheng, referring to the company's twin engines of growth.
"We will continue to exercise discipline and prudence as we actively seek new growth opportunities. This approach ensures value created for our shareholders are sustainable over the long term," he says.
GuocoLand shares closed at $1.88 on Aug 28, unchanged for the day but up 30.56% year to date.
Even so, at this level, the company's share price is less than half its net asset value of $3.90 as at June 30.
