GuocoLand (F17) H2 2023 earnings summary

Executive summary

• FY2023 revenue reached a record S$1,544.4m, up 60% YoY, driven by growth in Property Development and Property Investment.

• Singapore contributed more than 80% of FY23 revenue; the strategy combines development earnings with recurring rental income and asset appreciation.

Financial highlights

• Revenue rose to S$1,544.4m from S$965.5m; gross profit increased 5% to S$384.9m.

• Operating profit, excluding fair-value movements, FX and impairments, rose 39% to S$195.3m; profit before tax declined 38% to S$324.9m.

• Attributable profit fell 47% to S$207.1m; EPS was 16.97 Singapore cents versus 33.68 cents in FY22.

• Fair-value gains were S$156.3m versus S$248.8m in FY22; FY22 included a S$79.3m gain on transfer of Guoco Changfeng City South Tower to investment properties.

Segment performance

• Property Development revenue rose 62% to S$1.30b, with progressive sales recognition at Meyer Mansion, Midtown Modern and Lentor Modern, all substantially sold.

• Property Investment revenue grew 35% to S$169.6m, supported by Guoco Tower, Guoco Changfeng City South Tower and initial Guoco Midtown office contribution.

• At 30 June 2023, sales were Lentor Modern 89%, Midtown Modern 91%, Midtown Bay 51%, Meyer Mansion 99%, Wallich Residence 94% and The Avenir 99%.

• Guoco Central Park sold 98% of its first 200 units launched; Lentor Hills Residences sold 50% of its 598 units over launch weekend.