Guocoland Earnings Hit China Singapore Growth Drives Higher Dividend Payout
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In its latest financial report, GuocoLand has announced higher revenue for FY2025 ended June 30, with growth seen in both its development and investment segments. However, due to an allowance made for its development properties in China, net profit for the year experienced a decline of 17% compared to the previous year, totaling $107 million. Despite this decrease in earnings, the board has proposed a final dividend of 7 cents per share, which is slightly higher than the consistent 6 cents paid annually over the past five years.
According to GuocoLand’s group CEO, Cheng Hsing Yao, the company’s performance in FY2025 was strong, thanks to its “twin engines” of property development and investment in Singapore. This is despite the uncertain economic climate. Cheng also expects the company’s business in Singapore to remain resilient in the future.
In terms of revenue, GuocoLand recorded $1.56 billion in property development revenue, a 3% increase from the previous year. This growth was driven by the progressive recognition of sales from its sold residential projects in Singapore. The property investment segment also saw a 22% y-o-y increase in revenue, reaching $281 million, mainly supported by higher rental contributions from Guoco Tower and Guoco Midtown. Both properties were almost fully occupied as of June 30, with another office property, 20 Collyer Quay, recording a 98% commitment rate. The retail spaces at Guoco Tower, Guoco Midtown, and the newly completed Guoco Midtown II also maintained full occupancy.
The demand for GuocoLand’s residential projects in Singapore remained strong, with Midtown Modern and Lentor Modern being fully sold during FY2025. Additionally, Lentor Hills Residences, Lentor Mansion, and the newly launched Lentor Central Residences were substantially sold as of June 30. In August, GuocoLand launched Springleaf Residence, a 941-unit project in the Springleaf precinct, which achieved a 92% sell-through rate over its launch weekend, with an average price of $2,176 psf.
While the outlook for Singapore’s properties remains positive, the situation in China is different, with the market showing signs of struggling due to sector consolidation, geopolitical tensions, and economic headwinds. As a result, GuocoLand has made provisions of $82.8 million for foreseeable losses on its Chinese development properties in FY2025, down from $103.8 million in the previous year.
Despite the cyclical nature of development earnings, Cheng believes that GuocoLand’s investment portfolio will provide steady recurring income. He also stated that the company will continue to remain disciplined and prudent while actively seeking new growth opportunities to ensure long-term value creation for its shareholders.
As of Aug 28, GuocoLand’s shares closed at $1.88, remaining unchanged for the day but showing a 30.6% year-to-date increase. However, the stock is trading at less than half of its net asset value of $3.90 per share as of June 30. Interested buyers can check out the latest listings for Springleaf Residence, Lentor Central Residences, Lentor Mansion, Midtown Modern, and Lentor Hills Residences properties.