Guocoland FY2017 Results

I've initiated a smallish position with Guocoland earlier this year in April at 1.85
At that point, Guocoland is trading at about 40% off their NAV, which I felt that Guocoland is trading a very big discount and given a very attractive valuation. Recently, they have a run up to 2.28, which is about a 20% increase and currently at their 52week high. With the opening of TPC, it will be a big recurring income for them as well as giving them a higher RNAV.

Guocoland has released their Full Year results recently and has declared a 7 cents dividend for FY2017. This is an increase from their usual dividends of 5 cents. The group's revenue has increased 5% to $1.1 billion driven by higher residential sales and progressive revenue from residential projects in Singapore.

Dividends will be paid on 21 November 2017 and XD on 31 October 2017.


Residential Sales
- Goodwood Residence has been completely sold.
- As at end June 2017, the 381-unit freehold Leedon Residence in prime District 10 is approximately 90% sold
- 1,024-unit Sims Urban Oasis is approximately 80% sold.
- In Shanghai, Phase 3 of the 664-unit Changfeng Residence has sold and received bookings for over 600 units as at end June 2017

Land aquisition
Guocoland has acquired land in 3 different locations, District 9 in Singapore (Martin Modern), Yuzhong District in Chongqing and Cheras in Malaysia.

Martin Modern, a luxury residential development has been lauched and in Phase 1, 110 out of 120 units released have been sold.
Wallich Residence to be completed by end 2017.

TPC & Damansara City
Both integrated mixed-used developments, TPC & Damansara City has commenced operations.
Office & Retail spaces are more than 90% committed in TPC, while at Damansara, Office spaces are 100% occupied with retail spaces 80% committed.
Fair value gain from investment properties increased $234.8 million as compared to the previous financial year mainly due to higher fair value gain from Tanjong Pagar Centre’s Guoco Tower.

NAV

NAV at end FY2017 is at S$3.18. At their current price of S$2.28, Guocoland is still trading at a 30% discount to NAV. RNAV at S$3.63/share which also suggest that they are trading at a deep 37% discount to its RNAV.

I believe that with their upcoming projects, there will be more recurring income for Guocoland. With the dividends of 7 cents, it provides me a yield of 3.78% from my entry price.


Guocoland full year results can be found here.