GuocoLand’s profit attributable to equity holders drop 55% in FY2020

26-Aug-2020 Intellasia | PropertyGuru | 10:23 AM Print This Post

Profit attributable to equity holders fell to $114.1 million from $255.7 million a year ago. 

GuocoLand’s profit attributable to equity holders for the full year ended 30 June 2020 declined 55% year-on-year to $114.1 million from $255.7 million previously, said the group in a release.

Revenue, however, climbed 2% year-on-year to $941.8 million in FY2020.

The hike comes as revenue from property development business increased, but was offset by a drop in revenue from its hotel business as the COVID-19 pandemic affected demand for travel and hotel accommodation.

The group also revealed that it has achieved healthy residential sales in Singapore during the financial year, despite the challenging market environment during the second half of FY2020.

“In Singapore, 86% of Martin Modern and approximately 20% of the units at Meyer Mansion and Midtown Bay have been sold as at 30 June 2020. Wallich Residence is 54% sold and continues to register sales with prices remaining firm,” it said.

Suggested read: Guocoland’s Midtown Bay condo: 5 key points of interest

It noted that the COVID-19 pandemic affected the construction progress at the group’s development projects in 2H FY2020.

And while construction works at the group’s ongoing development projects in China, Malaysia and Singapore have since resumed, it expects to see construction delays as well as increased construction costs “due to supply chain disruptions and compliance with stricter requirements for worksites and workers”.

GuocoLand’s financial position remained healthy as at 30 June 2020, with net debt at $4.3 billion and gearing of 1.0 time.

Total loans and borrowings rose 17.3% from a year ago primarily due to the funding of new land acquisitions.

Equity attributable to ordinary equity holders marginally increased to $3.85 billion as at 30 June 2020 from $3.83 billion a year ago. The group said the increase was partially offset by the $77.7 million dividend payment in November 2019.

With this, the Board of Directors recommended “a first and final one-tier exempt ordinary dividend of six cents per share for FY2020”.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email [email protected]

 

Category: PRAsia, PropertyAsia

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