GuocoLand Q3 profits up 7% to $31.54m

It cited “healthy” sales for its residential projects in Singapore.

GuocoLand profits rose 7% YoY from $29.57m to $31.54m in Q3. According to its financial statement, revenue fell 15% YoY to $230.6m.

The company said its completed residential projects, especially those in Singapore, have recorded healthy sales in the past quarters. This, in turn, “has brought down the Group’s inventory of completed unsold units substantially.”

GuocoLand noted that even if its Martin Modern project reported strong sales, its revenue contribution is not substantial as revenue is recognised on a progressive basis. “These factors have resulted in lower revenue recognised for the group’s residential projects in the current quarter as compared to the previous corresponding quarter,” it added.

However, the lower revenue recognition from the residential projects was partially offset by higher revenue from the group’s property investment business. Gross margins improved slightly to 26% in the current quarter as compared to 23% in the previous corresponding quarter.

For the nine months of the financial year, profits soared 114% YoY to $240.06m, whilst revenue jumped 36% YoY to $963.14m. GuocoLand said the contribution from its Shanghai joint venture project, Changfeng Residence, bolstered the share of profit of associates and joint ventures to increase $191.5m.