News: GuocoLand starts construction of Guoco Midtown despite 84% earnings plunge

Feb 1, 2019

The Group recently broke ground for the integrated mixed-use development Guoco Midtown in Singapore.

GuocoLand’s earnings plunged by 84 percent to $10.85 million in the second quarter ended 31 December compared to about $66.01 million during the same period a year ago, according to an SGX filing on Thursday (31 Jan).

At the same time, the Singapore-based home builder’s revenue more than halved (61 percent) to $142.95 million from $370.56 million previously.

“This was mainly due to higher progressive revenue recognition in the previous corresponding quarter as Sims Urban Oasis obtained its Temporary Occupation Permit (TOP) in October 2017,” said GuocoLand in its latest financial statement.

Another reason for the weaker revenue is the lower sales of completed homes during the quarter under review, as the group’s inventory of completed unsold units significantly declined over the past quarters.

As a result, revenue for the six-month period ended 31 December fell by 58 percent year-on-year to around $310.96 million from $732.54 million. Net profit also slumped by 84 percent to $37.01 million from $237.8 million previously.

Meanwhile, GuocoLand said it has started the construction of a mixed-use project in the Core Central Region (CCR) during the past quarter. This is despite URA data showing that prices of private non-landed homes in the area dipped by 1.0 percent in Q4 2018 following a 1.3 percent uptick in the prior quarter.

“The group has a balanced pipeline of mixed-use, commercial and residential projects, including the integrated mixed-use development Guoco Midtown, which had its ground-breaking in November 2018.”

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

spacer
agent image
agency logo
Patrick Koh
Associate Division Director
ERA REALTY NETWORK PTE LTD
patrick.kohpk@gmail.com
CEA Licence No.:
L3002382K / R030351A
+(65) 9753 7823