http://www.straitstimes.com/archive/...jects-20121013

GuocoLand posts $9m profit thanks to local projects

Published on Oct 13, 2012

By Amanda Tan


PROPERTY developer GuocoLand has returned to black in the first quarter. In the three months to Sept 30, the group made a net profit of $9 million compared to a loss of $12.8 million in the previous corresponding period.

Revenue for the quarter increased 67 per cent to $181.6 million, mainly due to higher revenue recognised from the group's local residential projects.

The firm launched the 381-unit Leedon Residence in August, which continues to generate decent sales.

So far, 61 units out of the 90 launched have been sold.

In August, 27 units were sold at a median price of $1,970 per sq ft (psf), according to data from the Urban Redevelopment Authority.

Other expenses fell 66 per cent to $6.1 million, mainly because there was no fair value loss on interest rate and foreign exchange hedges in the period.

Instead, the group reaped a fair value gain of $4.5 million.

Finance costs rose by $4.5 million, due to higher borrowings in the quarter as compared to the same period a year earlier.

Earnings per share amounted to 0.81 cent, against a loss of 1.16 cent in the same period the year before. Net asset value per share for the quarter slid to $2.13 from $2.16 as of June 30.

In Beijing, GuocoLand also has pending legal judgments in its a Dongzhimen (DZM) project.

The group said it is "constantly exploring options and opportunities to manage the litigation and its interest in DZM". In its results statement released yesterday, the developer noted that the global economy outlook "remains uncertain".

Hence, it will "remain cautious and vigilant in managing its businesses".

"While the group continues to focus on strong execution of its current projects, it will also evaluate and explore investment opportunities in the current market environment," said the statement.

GuocoLand shares yesterday ended unchanged at $2.10.

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