GuocoLand relied on residential sales for profit growth

46% of Martin Modern is already sold for an average price of $2,255 psf.

GuocoLand Limited's (GuocoLand) profits for H1 in 2017 ballooned by 152% YoY to $208.53m, and it has its strong residential sales to thank, CIMB Research said.

According to a report, two ongoing residential projects, Sims Urban Oasis and Martin Modern, continue to see progressive take-up – as 92% and 46% are already sold, respectively, as at December 2017.

Martin Modern achieved an average selling price (ASP) of $2,255psf. Meanwhile, Sims Urban Oasis received temporary occupation permit (TOP) in October 2017.

"Progressive recognition of profits from these projects should continue to underpin profits, in our view," CIMB analyst Lock Mun Yee said.

GuocoLand can also look to its office business for yields. Office space at Tanjong Pagar Centre (TPC) is about 98% leased and rental contributions are expected to progressively rise.

CIMB estimates TPC could generate around $100m-$120m in rental and hotel revenue when fully operational.

The Sofitel Singapore City Centre was soft-opened in September 2017. The hotel currently enjoys an average 50% occupancy rate for the 150 rooms in operation.