GuocoLand, one of Singapore’s leading real estate companies, has reported higher revenue for its fiscal year 2025, which ended on June 30. This growth was seen across both the development and investment segments of the company. However, due to an allowance for its development properties in China, the net profit for the year fell by 17% year-on-year to $107 million. Despite this decline, the board has proposed a final dividend of 7 cents per share, an increase from the consistent 6 cents paid annually over the past five years.
According to group CEO Cheng Hsing Yao, both the property development and investment segments in Singapore have contributed to the strong performance of FY2025, despite the uncertainties in the macroeconomic landscape. He says, “We expect our businesses in Singapore to remain resilient in the future.”
In FY2025, GuocoLand recorded $1.56 billion in property development revenue, a 3% increase from the previous year. This was driven by the progressive recognition of sales from substantially sold residential projects in Singapore. The property investment segment also saw a 22% year-on-year growth, with a revenue of $281 million. This was supported by higher rental contributions from Guoco Tower and Guoco Midtown, both of which were close to 100% occupancy.
Additionally, Guoco Tower, Guoco Midtown, and the newly completed Guoco Midtown II maintained full occupancy in their retail spaces. The company’s residential projects in Singapore continued to see strong demand, with Midtown Modern and Lentor Modern being fully sold during FY2025. Lentor Hills Residences, Lentor Mansion, and the newly launched Lentor Central Residences were also substantially sold as of June 30.
In the month of August, GuocoLand launched Springleaf Residence, a 941-unit project in the Springleaf precinct. During its launch weekend, the development achieved a 92% sell-through rate at an average price of $2,176 psf based on caveats lodged.
Understanding the regulations and restrictions on property ownership in Singapore is crucial for foreign investors. Unlike landed properties that have stricter rules, foreigners are generally permitted to buy condos with minimal restrictions. However, they are required to pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their first property purchase. Despite this extra cost, the Singapore real estate market remains alluring for foreign investors due to its stability and potential for growth. In fact, many foreign investors are drawn to invest in Singapore Projects because of these factors.
The company’s overseas operations, on the other hand, saw a more subdued outlook. GuocoLand faced continued challenges in the Chinese market due to sector consolidation, geopolitical tensions, and broader economic headwinds. In FY2025, the company made provisions of $82.8 million for foreseeable losses on its Chinese development properties, compared to $103.8 million in the previous year.
Cheng notes that while development earnings are more cyclical, the investment portfolio provides steady recurring income for the company. He also adds that the company will continue to exercise discipline and prudence while actively seeking new growth opportunities to ensure sustainable long-term value creation for shareholders.
As of August 28, GuocoLand’s shares closed at $1.88, remaining unchanged for the day but seeing a year-to-date increase of 30.6%. However, the counter trades at less than half its net asset value of $3.90 per share as of June 30. Interested buyers can check out the latest listings for Springleaf Residence, Lentor Central Residences, Lentor Mansion, Midtown Modern, and Lentor Hills Residences.