[Update] GuocoLand reports revenue increase of 2% y-o-y to $941.8 mil

/ EdgeProp Singapore |

August 25, 2020 5:01 PM SGT

GuocoLand announced healthy residential sales from its ongoing projects in Singapore and Malaysia.

About 20% of the units at Meyer Mansion and Midtown Bay have already been sold, as well as 54% of the units at ultra-luxury Wallich Residence.

The developer says it anticipates some construction delays and increased costs due to supply chain disruptions and stricter work site requirements.

SINGAPORE (EDGEPROP) - GuocoLand has reported a 55% fall in FY2020 earnings ended June to $114.1 million from a year ago.

The Mainboard-listed property developer attributed the weaker bottom line to lower other income mainly due to the absence of fair value gain on investment properties compared to a year ago although this was partially offset by the gain from the sale of Guoman Hotel in Shanghai.

There was also an increase in other expenses due to the impairment loss provided on the group’s joint venture investment and higher fair value losses on the interest rate swaps.

Full-year revenue increased 2% year-on-year to $941.8 million, lifted by an increase in revenue from the property development business but partially offset by a decline in revenue from the hotels business as the pandemic adversely impacted the demand for travel and hotel accommodation.

GuocoLand reported healthy residential sales in Singapore and Malaysia despite the challenging market situation in 2HFY2020.

It had sold 387 units (86%) from its 450-unit Martin Modern project and about 20% of the 200-unit Meyer Mansion and 219-unit Midtown Bay. The ultra-luxury Wallich Residence was also 54% sold and the development “continues to register sales, with prices remaining firm”, says GuocoLand.

GuocoLand recorded healthy residential sales in FY2020, including its Midtown Bay project in Singapore. (Picture: Albert Chua/The Edge Singapore)

There were healthy sales from its ongoing projects in Malaysia. At Emerald Hills, a freehold low-density residential project, about 91% of the condo units in the first phase have been sold and 96% of the terrace houses have been sold. At Emerald 9, an integrated development with 816 apartments, 56% of the units have been sold.

In Selangor, 96% of the homes in Garland Residence have been sold. The development is part of the 1,000-acre master-planned township of Emerald Rawang.

GuocoLand says construction at the group’s ongoing development projects in Singapore, Malaysia, and China that was disrupted due to the Covid-19 pandemic has since resumed. However, delays and higher construction costs are expected “due to supply chain disruptions and compliance with stricter requirements for work sites and workers”, the company adds.

Meanwhile, revenue from the group’s investment properties decreased marginally. As at June 30, 2020, committed occupancies of the office spaces at Guoco Tower and 20 Collyer Quay were 99% and 95% respectively. Both properties enjoyed positive rental reversions for new and renewed leases in FY2020.

As at June 30, the group reported net debt of $4.3 billion and a gearing of 1.0. Total loans and borrowings increased by 17.3% y-o-y due to the financing of new land acquisitions.

The board of directors is recommending a first and final one-tier exempt ordinary dividend of 6 cents per share for FY2020.

Check out the latest listings near Meyer Mansion, Midtown Bay, Wallich Residence, Martin Modern, Guoco Tower, 20 Collyer Quay

For price trends, recent transactions, other project info, check out these projects' research page: Martin Modern, Meyer Mansion, Midtown Bay, Wallich Residence

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