GuocoLand: 1HFY2024 earnings S$66.2M, 12% higher y-o-y, revenue surged 61%

SINGAPORE: GuocoLand announced earnings of S$66.2 million for the First Half of Fiscal Year (1HFY2024), which ended on Dec 31, 2023. This marks a noteworthy 12% increase compared to the same period in the previous year, with the driving force behind this surge being the performance of the group’s Singapore business, The Edge Singapore reports.

The financial report is largely attributed to a 61% year-on-year increase in revenue, reaching S$1.07 billion. This surge was primarily fuelled by substantial growth in property development and property investment segments.

The property development wing experienced a substantial 67% year-on-year revenue hike, soaring to S$918 million. The heightened progressive recognition of residential sales in Singapore propelled this surge.

Notably, the group’s high-end residential projects – Meyer Mansion, Midtown Modern, and Lentor Modern – are on the brink of full occupancy. As these projects advance in construction, they are poised to contribute progressively to the group’s revenue stream.

Simultaneously, the property investment sector recorded a 46% year-on-year revenue growth, reaching S$109.4 million. This uptick is primarily attributed to the gradual commencement of leases at Guoco Midtown and favourable rental reversions at Guoco Tower.

An additional positive development was the contribution of S$20.5 million into the earnings pot from associates and joint ventures, marking a stark contrast from the corresponding period in the previous year, which saw a loss.

Operating profit exhibited a substantial 42% year-on-year upswing, reaching S$93.1 million, while earnings per share (EPS) stood at 5.11 cents, marking a 15% increase year-on-year on a fully diluted basis.

Singapore remains the bedrock of GuocoLand’s asset portfolio, posting a commendable 48% year-on-year net profit growth, reaching S$115.7 million.

Cheng Hsing Yao, the group CEO of GuocoLand, expressed satisfaction with the performance in the face of prevailing macroeconomic uncertainties.

“We turned in a strong performance for the first half of FY2024, despite the ongoing macroeconomic uncertainties. Our results were underpinned by high-quality income generating assets in Singapore, such as the landmark Guoco Tower and Guoco Midtown developments,” he said.

He added, “Both our twin engines of property development and property investment are firing strongly, but we are not standing still. We are constantly reviewing our portfolio, and will continue to invest prudently in promising areas, leveraging our capability in placemaking and rejuvenating neighbourhoods.”

As of Jan 31, GuocoLand’s shares closed at S$1.48, 4:58 pm SGT. /TISG

Read related: CapitaLand Ascott Trust: 16% y-o-y increase in DPS security for FY2023