GuocoLand's profit fell 55% to $114.07m in FY2020

Revenue from investment properties and hotels dropped.

GuocoLand saw its profit attributable to shareholders plunge 55% YoY to $114.07m in FY2020 from $255.67m in FY2019, an announcement revealed. This is despite its revenue edging up 2% YoY to $941.84m from $926.96m over the same period.

Revenue from the group’s property development business rose about 5% YoY. However, it was offset by a fall in the revenue from investment properties, with revenue from hotels shrinking by close to 30%.

Other income crashed 32% YoY to $162.6m due to the absence of fair value gain on investment properties in the current year, but the drop was partially offset by the gain from the sale of Guoman Hotel in Shanghai.

Tax expense jumped $47.2m to $68.7m in FY2020, whilst other expenses rose to $128.4m no thanks to the impairment loss provided on the group’s joint venture investment and the higher fair value losses on the interest rate swaps.

GuocoLand’s financial position as at 30 June comprises a net debt of $4.3b and a gearing of 1 time. Total loans and borrowings spiked 17.3% YoY mainly due to the financing of new land acquisitions.

The board of directors recommended a first and final one-tier exempt ordinary dividend of 6 cents apiece for FY2020.