Guocoland: Strong Singapore Core Cushions China Drag

Guocoland - DBS Research 2025-09-01: Strong Singapore Core Cushions China Drag

Guocoland: Strong Singapore Core Cushions China Drag

SGinvestors.io

Published: 2025-09-03 05:46 AM

GuocoLand offers compelling value to investors in our view, trading at a 60% discount to our RNAV despite solid fundamentals – steady recurring income from Guoco Tower and Guoco Midtown, as well as its strong residential execution.
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FY25 results within expectations.

Revenue rose 5% y-o-y to S$1,916mil, as contribution from property development business grew 3% y-o-y to S$1.56bn, with progressive revenue recognition from the property development business in Singapore and higher revenue in China (+28% y-o-y to S$191mil) due to the handover of some residential units at Guoco Central Park in Chongqing. However, an S$82mil provision was made for foreseeable losses on China development properties.
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In China, the commitment rate at Guoco Changfeng City in Shanghai was 92% at the South Tower and 34% at the North Tower.
Retail spaces at Guoco Tower, Guoco Midtown, and the newly completed Guoco Midtown II were fully occupied.

Management reaffirmed its commitment to a sustainable dividend policy, supported by the group’s growing recurring rental income.

See GuocoLand's dividends – A final dividend of 7 cents/share was proposed (FY21-24: 6 cents/share), translating to close to a 4% yield at the current GuocoLand's share price level.