GuocoLand (F17) H1 2024 earnings summary

Executive summary

• 1H FY24 revenue rose 61% YoY to S$1,066.4M; profit attributable to ordinary shareholders increased 12% to S$66.2M, while total profit fell 18% to S$67.1M.

• Adjusted operating profit, excluding fair-value and foreign-exchange gains/losses, increased 42% YoY to S$93.1M.

• Singapore contributed 80% of revenue, with segment net profit up 48% to S$115.7M; associates and JVs contributed S$20.5M versus a prior-year loss.

Financial highlights

• Gross profit rose 29% to S$213.4M; other income fell 55% to S$21.3M, mainly due to the absence of prior-year fair-value gains on interest-rate hedges and FX gains.

• Finance costs rose 87% to S$113.5M, reflecting Guoco Midtown interest expensed after completion and higher interest rates.

• Basic EPS rose 15% to 5.13 Singapore cents; diluted EPS was 5.11 cents, versus 4.46 cents for both measures in 1H FY23.

Outlook and guidance

• Recurring investment income is expected to grow as Guoco Midtown leases commence and operations ramp up; retail units are scheduled to open progressively.

• Lentor Modern’s 86,500 sq ft NLA retail component is expected to add recurring income upon completion in 2026; Lentor Mansion was expected to launch in Q1 2024.

• Singapore analysts forecast 2024 residential price growth of 3%–6% and Grade A office rent growth of 2%–3%, despite near-term demand and supply challenges.

• Portfolio investment is to remain prudent, focused on promising areas, placemaking and neighbourhood rejuvenation; Malaysia’s residential outlook is cautiously optimistic.