GuocoLand reports 1HFY2023 earnings of $59 million

GuocoLand has seen a considerable increase in revenue and profits for 1HFY2023 ending Dec 2022. Supported by larger contributions from development, investment and hotel businesses, the company reported total revenue of $585.3 million, a 46% increase year-on-year. In contrast, earnings came in 12% down year-on-year at $59 million. When accounting for the one-off disposal gain of $14.3 million that was reported in the preceding period, earnings would have been up 11%.

Development remains the biggest earnings generator, having contributed 83% or $550.4 million of total revenue. With gradual progress in the launch of new projects, GuocoLand has seen strong sales of their residential properties. Wallich Media Circle Condo Residence, their ultra-luxury development has sold 96% of the 181 units, while Meyer Mansion and Midtown Modern with 200 and 558 units respectively, are both 96% and 85% sold. The Avenir, a joint venture between Hong Leong Holdings, GuocoLand and Hong Realty (Private), has achieved a 90% sold rate from its 376 units.

Investment revenue has also seen an increase of 11%, or $74.8 million in total. This comes from the higher rental collection from their office properties; Guoco Tower and Guoco Changfeng City South Tower in Shanghai, as well as 20 Collyer Quay which is 95% occupied. Guoco Tower, situated right above the Tanjong Pagar MRT station, has close to 100% occupancy rate as well. Guoco Changfeng City’s South Tower has a take-up rate of 91% and its retail component is fully leased to a master tenant.

GuocoLand’s hotel business has also seen a strong increase, with revenue rising threefold to $35.3 million. This comes from their Sofitel Singapore City Centre Hotel. With the easing of pandemic control policies and government support, CEO of GuocoLand Cheng Hsing Yao remains optimistic about the future of their real estate segment. He notes, “Sales of our residential projects are going strong, while revenue from our premium Grade A offices has grown consistently over the years as we see the trend of “flight to quality” by top global and regional companies continuing to grow, even as they embrace a hybrid work environment.”

The company has a robust development pipeline with the Lentor Modern project launching in September with 521 units sold out of the 605. Lentor Hills Residences is also set to launch in the first half of the year with 598 units. Additionally, Guoco Midtown is projected to be fully operational in 2023 with 709,000 sq ft of office space. GuocoLand will continue to build its presence as a multi-platform real estate player.