SINGAPORE (EDGEPROP) - GuocoLand has reported a 46% y-o-y increase in revenue for 1HFY2023 ended Dec 2022, thanks to higher across the board contributions from its development, investment and hotel businesses.

Read also: GuocoLand promotes Valerie Wong to managing director

Earnings for the same period was down 12% y-o-y to $59 million. If the one-off disposal gain of $14.3 million booked in preceding period’s 1HFY2022 was excluded, GuocoLand would have reported an earnings increase of 11%.

The company is trying to generate a bigger proportion of its earnings from investment income that’s more recurring in nature.

For now, development remains the key earnings driver, contributing 83%, or $550.4 million of GuocoLand’s total revenue for 1HFY203.

To date, GuocoLand’s ultra-luxury development Wallich Residence has sold 96% of its 181 units.

Meyer Mansion, a freehold luxury development that will be completed in 2024, is 96% sold. This project has a total of 200 units.

Midtown Modern, a 558-unit luxury development, is 85% sold; Midtown Bay, a 219-unit development, is 44% sold.

The Avenir, a joint venture development, is 90% sold. The joint venture partners are Hong Leong Holdings, GuocoLand and Hong Realty (Private). This project has 376 units.

The company says it has a robust development pipeline of projects. Lentor Modern, which was launched in September, has sold 521 units of its 605 units.

The Lentor Hills Residences, with 598 units, is likely to be launched within the first half of the year. It is a joint venture with Hong Leong Holdings, GuocoLand and TID.

The company reported higher contributions from its investment business too, which contributed 11% of the revenue, or $74.8 million, but 35% of the gross profits.

GuocoLand attributes this to higher rental collected from Guoco Tower and the Guoco Changfeng City South Tower in Shanghai.

Cheng says the company will continue to build its presence as a multi-platform real estate player.

Guoco Midtown, an integrated mixed-use development in Singapore’s Central Business District with 709,000 sq ft of office space, is expected to be fully operational in 2023.

Guoco Tower, which is sited right on top of the Tanjong Pagar MRT station, enjoyed positive rental reversions. As at Dec 31, the occupancy rates (including pre-committed leases) for Guoco Tower’s offices and retail units maintained at close to 100%.

Other investment properties generating recurring income include 20 Collyer Quay, which is 95% occupied as at Dec 31 2022.

The Guoco Changfeng City’s South Tower, which has seen a 91% take-up rate for its office. The retail component is fully leased to a master tenant.

“China’s easing of pandemic control policies, alongside support measures introduced by the government will likely see improvements in business confidence and the real estate sector going forward,” says GuocoLand.

GuocoLand, which operates the Sofitel Singapore City Centre hotel, has reported higher revenue from this segment too, with revenue up three-fold to $35.3 million.

Cheng Hsing Yao, CEO of GuocoLand, says the global real estate industry has faced a series of challenges, from supply chain issues, labour shortage, to inflation and rising costs.

“Despite the multiple headwinds, GuocoLand has been able to increase our revenue and profits and deliver a robust set of results to our shareholders,” he says.

“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,” adds Cheng.

Check out the latest listings near Meyer Mansion, Midtown Modern,  Midtown Bay, The Avenir, Lentor Modern, Lentor Hills Residences, Guoco Tower, Collyer Quay, Tanjong Pagar MRT station