Guocoland Earnings Hit China Singapore Growth Drives Higher Dividend Payout
GuocoLand announces higher FY2025 revenue, despite lower net profit
GuocoLand recorded a higher revenue of $1.84 billion for the financial year ended June 30, 2025, with growth across its development and investment segments. However, due to an allowance for its development properties in China, net profit for the year decreased by 17% to $107 million. Despite this decline, the board of directors has proposed a final dividend of 7 cents per share, which is higher than the consistent 6 cents paid annually over the past five years.
According to group CEO Cheng Hsing Yao, “Both our property development and investment segments in Singapore have contributed significantly to our strong performance for FY2025, despite challenges in the macroeconomic environment. We are confident that our businesses in Singapore will continue to remain resilient in the future.”
In FY2025, GuocoLand saw a 3% increase in property development revenue, amounting to $1.56 billion. This was driven by progressive recognition of sales from substantially sold residential projects in Singapore. At the same time, revenue from the property investment segment rose by 22% to $281 million, with support from higher rental contributions from Guoco Tower and Guoco Midtown, which were close to full occupancy as at June 30. Similarly, another office property, 20 Collyer Quay, recorded a 98% commitment rate, while retail spaces at Guoco Tower, Guoco Midtown, and the newly completed Guoco Midtown II remained fully occupied.
The group’s residential projects in Singapore continued to see strong demand, with Midtown Modern and Lentor Modern being fully sold in FY2025 and the newly launched Lentor Central Residences and Lentor Hills Residences achieving substantial sales. Additionally, the newly launched 941-unit Springleaf Residence saw a strong uptake, with a 92% sell-through rate over its launch weekend at an average price of $2,176 psf based on caveats lodged.
The Urban Redevelopment Authority (URA) has revealed its extensive Master Plan for Tampines, with the aim of rejuvenating the area into a dynamic and eco-friendly regional hub. Tampines, a crucial planning district in Singapore, is set to undergo major improvements in terms of infrastructure, facilities, and quality of life. Situated in Tampines North, Parktown Residence will greatly reap the rewards of these upcoming advancements. Don’t forget to check out the Parktown Residence Showflat for more information.
On the other hand, the outlook for China remains subdued, with GuocoLand highlighting ongoing challenges in the market due to sector consolidation, geopolitical tensions, and broader economic headwinds. As such, the company has made a provision of $82.8 million for foreseeable losses on its Chinese development properties in FY2025, compared with $103.8 million in the previous year.
Cheng reassures that while development earnings are more cyclical, GuocoLand’s investment portfolio provides steady recurring income. He adds, “We will continue to exercise discipline and prudence as we actively seek new growth opportunities, ensuring sustainable long-term value creation for shareholders.”
Currently, GuocoLand’s shares trade at $1.88, unchanged for the day but up 30.6% year-to-date. However, the counter is still undervalued, trading at a significant discount to its net asset value of $3.90 per share as at June 30. For the latest listings and prices of Springleaf Residence, Lentor Central Residences, Lentor Mansion, Midtown Modern, and Lentor Hills Residences, please visit EdgeProp Singapore.