GuocoLand's net profit up 48% for FY21 to S$169.1m

Singapore

PROPERTY developer GuocoLand has posted a 48 per cent year-on-year increase in net profit to S$169.1 million for the full year ended June, despite a 9 per cent fall in revenue.

Revenue for FY21 was S$853.7 million, down from S$934.8 million a year ago, the mainboard-listed company said in financial statements released on Thursday.

This was partly due to lower progressive recognition of sales year on year from its Singapore residential projects, as sales and construction of its Martin Modern project in River Valley reached its tail end and other projects were still in early stages of construction, GuocoLand said.

At the same time, the group's hotel segment and investment properties in Malaysia registered lower revenues because of the Covid-19 pandemic, it said.

Earnings per share was 13.52 Singapore cents, up from 8.57 cents in the previous financial year.

Company directors have proposed a final dividend of 6 cents per share, on par with the payout last year.

The company said it sold close to 1,500 residential and commercial units in Singapore, China and Malaysia in FY21, with a total value of about S$1.4 billion.

The Covid-19 pandemic still weighs on the company's property development business in Singapore and Malaysia, but it said it has become more resilient against disruptions.

"Many of the group's residential and commercial projects have already factored in a new way of working and living into their design," the group said, in reference to the trend of working from home. The company noted that its office buildings feature advanced air-quality management systems.

"Going forward, we will leverage our development and asset-management capabilities to identify and seize more opportunities, and create value for shareholders," said Cheng Hsing Yao, GuocoLand Group chief executive said.

GuocoLand's shares closed flat at S$1.62 on Thursday.