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

• 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.
• - Read this at SGinvestors.io -

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.
• - Read this at SGinvestors.io -
• 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.

Remain constructive on GuocoLand’s residential sales outlook.

• Read more at SGinvestors.io.

Tabitha FOO DBS Group Research | Derek TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-09-01

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