Developer GuocoLand’s net profit surged to $244.85 million in the fourth quarter ended 30 June 2017 from S$39.85 million in the same period a year ago, while revenue soared to S$407.37 million from S$214.48 million, revealed an SGX filing on Saturday (27 August).
“GuocoLand has delivered a creditable set of results against the backdrop of a challenging operating environment. This is supported by healthy sales at our residential projects in Singapore and we are very pleased with the good leasing commitments at Tanjong Pagar Centre and Damansara City, our two flagship integrated developments in Singapore and Malaysia,” said GuocoLand Group President and CEO Raymond Choong.
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For instance, in Singapore, all the units at Goodwood Residence have been taken-up. Around 90 percent of the homes at the 381-unit freehold Leedon Residence have been bought as of 30 June, while 80 percent of the flats in the 1,024-unit Sims Urban Oasis have been taken-up.
However, GuocoLand’s earnings for the whole of FY2017 dropped to S$357.18 million from S$606.69 million in Q4 FY2016, while revenue increased from S$1.06 billion to S$1.11 billion.
The company posted a lower profit mainly due to a drop in other income to S$318.2 million in FY2017 given that the one-time gain from the sale of subsidiaries associated with Beijing’s Dongzhimen project was recognised in FY2016. Nevertheless, the drop was partially mitigated by fair value gains from investment properties of S$254.5 million largely attributed to Tanjong Pagar Centre’s Guoco Tower.
Choong also revealed that they made a total of S$$1.4 billion in land acquisitions in the said year, including three locations in Singapore’s District 9, Cheras in Malaysia and Yuzhong District in Chongqing, China. These sites are expected to yield a total gross floor area of about nine million sq ft.
Furthermore, the overall gross development value of the GuocoLand’s new and existing projects has reached about S$10 billion as of 30 June 2017.
This article was edited by Denise Djong.