GuocoLand books $85.4 mil earnings for 1HFY2026, up 14% y-o-y

Deepa Chevi

February 2, 2026 1:48 PM SGT

propertyeditor@edgeprop.sg

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The Lentor Modern mall, which opened in January 2026, has achieved a 90% commitment rate to date (Photo: EdgeProp Singapore)

GuocoLand recorded a 14% y-o-y increase in profit attributable to equity holders to $85.4 million for the first half ended Dec 31, 2025 (1HFY2026), despite a decline in revenue across the same period.

Group revenue declined 22% y-o-y in 1HFY2026 to $791.9 million, due largely to the timing of progressive revenue recognition from residential projects under construction. However, earnings were bolstered by higher income from property investment assets, gains from the disposal of the Thistle Johor Bahru hotel in Malaysia and lower finance costs.

According to group CEO Cheng Hsing Yao, GuocoLand’s performance reflects the complementary nature of its two core business pillars. “GuocoLand’s twin engines of Property Development and Property Investment have both delivered,” he says, pointing to strong residential sales alongside steady recurring income from the investment portfolio.

Resilient demand for property developments

GuocoLand continued to see healthy demand for its residential developments in Singapore. Its four projects in the Lentor Hills estate — Lentor Modern, Lentor Hills Residences, Lentor Mansion and Lentor Central Residences — were fully sold as at Dec 31, 2025.

The group’s latest joint venture launches, Springleaf Residence, Faber Residence and Penrith, also saw strong take-up at launch and were substantially sold by the end of the reporting period, with take-up rates ranging between 91% and 97%. These projects are expected to contribute progressively to earnings as construction advances, with all three projects expected to be completed in 2029.

Looking ahead, GuocoLand is preparing to launch River Modern at River Valley Green in the first quarter of 2026. Wholly developed by the group, the 455-unit project will feature two residential towers with commercial shops on the first storey and direct access to Great World MRT Station on the Thomson-East Coast Line.

Another upcoming mixed-use development at Tengah Garden Avenue, jointly developed with Hong Leong Holdings and CSC Land Group (Singapore), is slated for launch in the second quarter of 2026. The project will comprise 860 residential units and retail shops and will be connected to the future Hong Kah MRT station on the Jurong Region Line.

In China, GuocoLand continued to hand over completed residential units and monetise projects in Chongqing to improve liquidity and manage gearing, as market sentiment remained subdued.

Investment properties deliver stable recurring income

GuocoLand’s investment property portfolio continued to provide a stable earnings base. In Singapore, Guoco Tower and Guoco Midtown maintained full commitment, while 20 Collyer Quay recorded a 93% commitment rate. Retail spaces at Guoco Tower, Guoco Midtown and Guoco Midtown II were also fully committed.

Read also: Thakral posts record 2025 profit of $170.9 mil

The Lentor Modern mall, which opened in January 2026, has achieved a 90% commitment rate to date. With direct MRT connectivity and a broad mix of amenities, the mall is expected to contribute to recurring rental income as leases progressively commence, serving a large residential catchment across Lentor and neighbouring areas.

In Shanghai, Guoco Changfeng City continued to see steady leasing momentum. The South Tower recorded a commitment rate of 88%, while the North Tower reached almost 52%, including leases at advanced stages of signing.

Cheng says the recurring income stream from investment properties plays a stabilising role within the group. “While Property Development earnings are dependent on the timing of land acquisitions, launches and construction progress, the recurring rental revenue from Property Investment provides a stable earnings base,” he notes. “To deliver sustainable, long-term value for our shareholders, we will seek to grow both earnings streams.”

Balance sheet remains resilient

GuocoLand’s financial position remained robust as at Dec 31, 2025, with total assets of $11.75 billion and equity attributable to shareholders of $4.38 billion. Total loans and borrowings fell 12% y-o-y to $4.8 billion, reflecting repayments from cash proceeds as substantially sold projects progressed towards completion.

The group’s debt-to-assets ratio improved to 0.41 times, down from 0.44 times six months earlier, supported by stable cash flows from its investment properties. Singapore remained the group’s key market, accounting for about 70% of revenue and 75% of total assets as at end-December 2025.

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