SINGAPORE (Aug 27): GuocoLand announced earnings of $141.2 million for the 4Q ended June, down 42% from $244.8 million a year ago on lower revenue and other income.
This brings the property developer’s earnings for FY18 to $381.3 million, which is 7% higher than the $357.2 million posted in FY17.
The group has recommended a final dividend of 7 cents per share for FY18, unchanged from a year ago.
Revenue for the latest 4Q more than halved to $197 million from $407.4 million a year ago due to a lower inventory of completed unsold units, which the group attributes to healthy sales of completed residential projects in the past quarters, especially those in Singapore.
Gross margin however improved to 35% in 4Q18 from 24% in the previous corresponding quarter.
In addition, other income fell 44% to $147.2 million due to lower fair value gain from Tanjong Pagar Centre’s Guoco Tower as compared to a year ago.
Other expenses were reduced to $0.3 million from $11.2 million previously, mainly due to movements in foreign exchange and fair value changes on foreign exchange hedges.
Finance costs fell by 51% to $11.8 million on higher capitalisation of finance costs during the current quarter for projects under construction.
“We have been active but disciplined in our investment bids and the selective acquisitions of well-located land sites will provide a pipeline of mixed-use, commercial and residential developments,” says Raymond Choong, GuocoLand group president and CEO.
“GuocoLand has a good track record as a developer of quality properties which meet the needs of buyers, occupiers and tenants. Our pipeline projects will allow us to showcase our development expertise and create exciting new products that will contribute to future earnings,” he adds.
Shares in GuocoLand closed flat at $1.90 on Friday.