GuocoLand's Robust Performance in the Real Estate Sector

Despite challenges in the luxury property market, GuocoLand's financial standing is strong, boasting total assets of SGD 12.01 billion, and the Group has additional strategies with forthcoming project launches.

The outside of Martin Modern. Image: GuocoLand.

GuocoLand, a prominent real estate group in Singapore, attained a record revenue of SGD 1.54 billion for FY2023, reflecting a 60% year-on-year increase. This was propelled by robust operational success from both its dual sectors of Property Investment and Property Development.

Corresponding with the increasing revenue, the group's operating profit (profit before tax excluding fair value gains/losses, foreign exchange gains/losses, and impairments) rose 39% year-on-year to SGD 195.3 million. Profit attributable to equity investors declined by 47% year-on-year to SGD 207.1 million, primarily due to elevated fair value gains from the group’s integrated initiatives in Singapore in FY2022. Nevertheless, the group's investment properties persisted in realizing capital appreciation despite heightened market challenges. GuocoLand's financial standing is robust, with total assets amounting to SGD 12.01 billion and total equity attributable to ordinary shareholders of SGD 4.27 billion.

This is a comprehensive review of GuocoLand's performance throughout each segment:

Real Estate Investment

The Property Investment segment generated revenue of SGD 169.6 million for FY2023, reflecting a 35% year-on-year increase, bolstered by robust rental income growth from the group's investment properties in Singapore and China, as well as the initial contribution from the Guoco Midtown office tower, which received Temporary Occupation Permit (“TOP”) in January 2023. The Guoco skyscraper and 20 Collyer Quay properties attained occupancy rates of approximately 98%, but Guoco Changfeng City in Shanghai and the Guoco Midtown office skyscraper recorded take-up rates of 95% and 85%, respectively.

Real Estate Development

The Property Development business generated revenue of SGD 1.3 billion for FY2023, reflecting a 62% year-on-year growth. This was primarily propelled by the increased progressive recognition of sales from the group's luxury residential buildings in Singapore, such as Meyer Mansion, Midtown Modern, and Lentor Modern, all of which are significantly sold out. The segment's operational profit increased from roughly SGD 157 million in the prior year to nearly SGD 181 million for FY2023.

Anticipating the future, an exhilarating period is imminent for GuocoLand and its dual-engine strategy as it finalizes the concluding stages of Guoco Midtown and prepares to inaugurate the forthcoming development at the Lentor Gardens site in the first half of 2024.