GuocoLand earnings hit by China, but Singapore growth drives higher dividend payout
The 941-unit Springleaf Residence achieved a 92% sell-through rate over its launch weekend, at an average price of $2,176 psf (Photo: GuocoLand)
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GuocoLand reported higher revenue for FY2025 ended June 30, with growth across both its development and investment segments.
However, due mainly to an allowance for its development properties in China, net profit for the year fell 17% y-o-y to $107 million.
Despite the earnings decline, the board proposed a final dividend of 7 cents per share, higher than the consistent 6 cents paid annually over the past five years.
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“Both our twin engines of property development and property investment in Singapore have contributed to our strong performance for FY2025, despite pervasive macroeconomic uncertainties,” says group CEO Cheng Hsing Yao. “We expect our businesses in Singapore to stay resilient going forward.”
Cheng: Both our twin engines of property development and property investment in Singapore have contributed to our strong performance for FY2025, despite pervasive macroeconomic uncertainties (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Revenue performance
In FY2025, GuocoLand booked $1.56 billion in property development revenue, up 3% y-o-y. The increase was driven by progressive recognition of sales from substantially sold residential projects in Singapore.
Revenue from the property investment segment grew 22% y-o-y to $281 million, supported by higher rental contributions from Guoco Tower and Guoco Midtown.
As at June 30, both Guoco Tower and Guoco Midtown were close to 100% occupied. Another office property, 20 Collyer Quay, recorded a 98% commitment rate. Retail spaces at Guoco Tower, Guoco Midtown, and the newly completed Guoco Midtown II maintained full occupancy.
Residential developments
The group’s residential projects in Singapore continued to see strong demand. Midtown Modern and Lentor Modern were fully sold during FY2025, while Lentor Hills Residences, Lentor Mansion, and the newly launched Lentor Central Residences were substantially sold as of June 30.
Earlier this month, GuocoLand launched Springleaf Residence, a 941-unit project in the Springleaf precinct. The development achieved a 92% sell-through rate over its launch weekend, at an average price of $2,176 psf based on caveats lodged.
Midtown Modern and Lentor Modern (pictured above) were fully sold during FY2025 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Overseas operations
In contrast, the outlook in China remains subdued. GuocoLand highlighted continued challenges in the market due to sector consolidation, geopolitical tensions, and broader economic headwinds.
The company made provisions of $81.8 million for foreseeable losses on its Chinese development properties in FY2025, compared with $104.1 million in FY2024.
“While development earnings are more cyclical, depending on the timing of land acquisitions and project launches, GuocoLand’s investment portfolio provides steady recurring income,” says Cheng. “We will continue to exercise discipline and prudence as we actively seek new growth opportunities, ensuring sustainable long-term value creation for shareholders.”
GuocoLand’s shares closed at $1.88 on Aug 28, unchanged for the day but up 30.6% year-to-date. Even so, the counter trades at less than half its net asset value of $3.90 per share as at June 30.
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