GuocoLand’s Revenue Pushed Up By Guoco Tower
SINGAPORE – GuocoLand announced that its group revenue rose by 13 percent to S$965.5 million in the financial year ended 30 June 2022 compared to the same period in 2021, according to local bourse filings published on Wednesday morning (30 August, SGT).
In particular, the contribution of recurring income from the group’s investment properties continued to grow steadily, accounting for 13 percent of the group’s overall revenue and it increased by 10 percent to S$126.1 million on an annual basis.
“This growth was mainly driven by higher rental revenues from Guoco Tower,” said the Singapore-listed real estate developer, adding that revenue was also recognised for the sale of two low-rise office buildings in Guoco Changfeng City.
As a result, GuocoLand’s gross profit climbed by 36 percent year-on-year to S$365.7 million. This was primarily attributed to recognition of a fair value gain in cost of sales for the transfer of Guoco Changfeng City’s South Tower from development properties to investment properties. Excluding the fair value gain from the transfer, the fiscal year’s gross profit margin remained stable at about 30 percent.
“Other income more than doubled to S$354.6 million due to higher fair value gain from the group’s investment properties, Guoco Tower and Guoco Midtown. Consequently, current year’s taxes included adjustment for the non-taxable items relating to unrealised fair value gains from the investment properties in Singapore,” noted the developer.
For the financial year under review, GuocoLand’s property portfolio in Singapore remains as the top contributor to its overall revenue, accounting for over 70 percent of the total turnover.
Versus the prior fiscal year, revenue from the Singapore property portfolio rose by 13 percent to S$698.2 million, as sales and construction of Meyer Mansion, Midtown Modern, and Midtown Bay progressed. Driven by higher rentals from Guoco Tower, revenue from the investment properties here grew by 8 percent to S$114.3 million.
Furthermore, higher capital values, mainly from Guoco Midtown and Guoco Tower, resulted in a net fair value gain on the Singapore investment properties of S$253.8 million. In turn, this doubled the profit from local properties to S$434.8 million.