Singapore's GuocoLand FY operating profit falls 58% on China property allowances

Guocoland

28/08/2026 24:58

Overview
Singapore property developer's FY2026 revenue fell 25% yr/yr as project recognition lagged sales
Net profit attributable to equity holders declined 11% yr/yr, impacted by China property allowances
Company proposed final dividend of 8 Singapore cents per share, up from 7 cents last year

Outlook
Lentor Central project expects a 1H 2027 launch with approximately 553 units across three towers
Berlayar Drive site awarded to GuocoLand and Intrepid Investments could yield up to 416 private homes
River Modern, 93% sold as at 30 June, is expected to complete in 1H 2030

Result Drivers
DELAYED REVENUE RECOGNITION - Property development revenue fell as Singapore projects remained at early construction stages and joint ventures were equity accounted
CHINA PROPERTY ALLOWANCES - A S$207.2 mln allowance on Chongqing development properties, following a market-condition review, drove the 58% decline in operating profit
INVESTMENT PROPERTY PERFORMANCE - High occupancies and positive rental reversions lifted recurring property-investment revenue 4% to S$292.5 mln

Company press release: ID:nSNbdT905

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
 
S$1.43 bln
 
FY Net Income Attributable to Equity Holders
 
S$95.20 mln
 
FY Operating Income
 
S$125 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for GuocoLand Ltd is S$3.25, about 44.4% above its August 27 closing price of S$2.25
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Aug 25 - Singapore's Wing Tai Holdings FY revenue jumps on higher sales commissions
Aug 26 - Singapore's Chuan Hup Holdings yearly revenue dips on lower property sales
Aug 26 - DIT Group's H1 revenue falls, loss widens on weak China property demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)