GuocoLand H2 net profit down 70% at S$9.8 million

[SINGAPORE] Property developer GuocoLand on Friday (Aug 28) posted a 70 per cent drop in net profit to S$9.8 million for the second half ended Jun 30, from S$32.4 million in the year-ago period.

Earnings per share fell for the six-month period to S$0.0028 from S$0.0256. Revenue fell 29 per cent to S$642 million from S$900.3 million.

The board has proposed a first and final dividend of S$0.08 per share for the period, up from S$0.07 per share the year before. It will be paid on Nov 18, after books closure on Nov 5.

For the full year, net profit fell 11 per cent to S$95.2 million, from S$107.1 million in the year-ago period. Earnings per share dropped to S$0.0736, compared with S$0.0843 previously.

The decline in GuocoLand’s bottom line was mainly due to the allowance for projected losses recognised for the group’s China development properties.

But the losses were partially offset by higher fair value gains from investment properties, higher share of profits from associates and joint ventures, and gains from the disposal of the Thistle Johor Bahru hotel in Malaysia, said GuocoLand.

Cheng Hsing Yao, group CEO of GuocoLand, said: “We have taken a prudent reassessment of our China residential portfolio to reflect our views of the market conditions in China. With most of the financial risk in China addressed, we are well-positioned to pursue future growth opportunities across all markets that can create long-term value for our shareholders.”

Revenue for FY2026 was down 25 per cent at S$1.4 billion, from S$1.9 billion in the previous year.

Despite strong sales from new projects launched in FY2026, the group said most of the revenue from its residential developments, including joint venture projects, had yet to be recognised as the projects were still in the early stages of construction.

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Several of GuocoLand’s developments, including Springleaf Residence, Penrith and River Modern, are expected to be completed between 2029 and 2030.

Its property development segment raked in S$1.1 billion in revenue for FY2026, compared with S$1.6 billion in the previous year. This was mainly due to the timing of progressive revenue recognition from the group’s residential developments in Singapore.

Revenue from joint venture residential projects in Singapore, including Springleaf Residence and Faber Residence, was also excluded from the segment’s top line as these projects were equity-accounted.

GuocoLand’s proportionate revenue from its equity-accounted projects in Singapore rose to about S$391 million, from S$211 million in FY2025. The group also recorded a S$32.4 million share of profit from associates and joint ventures, reversing the share of loss reported a year earlier.

The improvement was mainly driven by contributions from Springleaf Residence and Lentor Hills Residences, as construction of the projects advanced.

Revenue from its property investment portfolio grew on the back of higher recurring rental revenue from Guoco Tower, Guoco Midtown and 20 Collyer Quay. Lentor Modern mall, which opened in January this year, achieved 95 per cent in commitment rate as at end-June.

Cheng said the group would remain focused on investing in and growing its two core businesses in Singapore in the near term, while pursuing opportunities in its key markets to support longer-term growth.

Shares of GuocoLand were trading 1.8 per cent or S$0.04 lower at S$2.21 as at 10.39 am on Friday, after the release of its results.