GuocoLand reports 1HFY2024 earnings of $66.2 mil, 12% higher y-o-y, as revenue surged by 61%

By Felicia Tan

/ The Edge Singapore |

January 31, 2024 9:13 AM SGT

Guoco Tower. Photo: GuocoLand

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GuocoLand has reported earnings of $66.2 million for the 1HFY2024 ended Dec 31, 2023, 12% higher y-o-y, backed by a strong performance in the group’s Singapore business.

The earnings came about as the group’s 1HFY2024 revenue surged by 61% y-o-y to $1.07 billion due to strong growth in its property development and property investment segments.

Revenue for the group’s property development surged by 67% y-o-y to $918 million driven by higher progressive recognition of residential sales in Singapore. The group also continues to see strong demand for its Singapore residential developments with its high-end projects, Meyer Mansion, Midtown Modern and Lentor Modern, almost fully sold. As construction progresses, these projects will progressively contribute to the group’s revenue.

Revenue for the group’s property investment segments grew by 46% y-o-y to $109.4 million mainly due to the progressive commencement of leases at Guoco Midtown as well as the positive rental reversions at Guoco Tower.

The group also saw a positive contribution of $20.5 million from associates and joint ventures compared to a loss in the corresponding period the year before.

Operating profit also increased by 42% y-o-y to $93.1 million.

Earnings per share (EPS) stood at 5.11 cents, up 15% y-o-y, on a fully diluted basis.

GuocoLand’s portfolio of assets in Singapore remained its mainstay with a net profit growth of 48% y-o-y to $115.7 million.

“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,” says Cheng Hsing Yao, group CEO of GuocoLand.

“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,” he adds.

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