GuocoLand has also built up a portfolio of investment properties including Guoco Tower, Guoco Midtown and 20 Collyer Quay which have high committed occupancies of more than 90%. Since some 75% of GuocoLand’s assets are in Singapore, it may not suffer fair value revaluation declines like some of its peers, despite its interest expense rising by 87% in 1HFY2024.
Our filter for the privatisation story on Page 10 threw up a handful of very undervalued real estate companies of which Sinarmas Land (SGX:A26
) and GuocoLand (SGX:F17) were the top two.
GuocoLand’s fundamentals have been covered extensively. Its net profit in 1HFY2024 ended December 2023 rose 12% to $66.2 million on the back of a 61% rise in revenue to $1.07 billion. This is because revenue includes residential units (excluding executive condos) sold which is recorded based on the percentage of completion.
