GuocoLand Q4 net and full year results in the red

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Published August 28, 2009

GuocoLand Q4 net and full year results in the red


GUOCOLAND has posted a net loss for the fourth quarter as well as the full year, due mainly to a revaluation loss on Tung Centre, writedowns in values of development properties in Malaysia and a net foreign exchange loss.

It was $73.1 million in the red for the period ended June 30, against a net profit of $98.6 million a year ago. Revenue fell 16 per cent to $139.2 million

Full-year net loss came to $70.2 million, against a $161.8 million net profit previously.

GuocoLand said that it would launch later this year a 119-unit freehold condo on the former Palm Beach Garden site in the East Coast area. GuocoLand shareholders will receive a first and final dividend of five cents per share, down from an eight cents payout in the preceding year.

In Beijing, structural works have been completed for the residential, hotel and retail components, and two office blocks at the group's Dongzhimen project. 'The airport terminal and the transportation centre were completed and handed over to the Beijing government in July 2008,' GuocoLand said.

The various legal actions taken by the group to defend and protect its 90 per cent interest in the development are pending hearing and/or adjudication before the courts in China.

The group booked a revaluation loss on investment properties of $80.9 million, primarily on Tung Centre. The 999-year leasehold office block was valued at $320.48 million, inclusive of reversionary interests for long leases of some space in the building to BNP and Dresdner Bank. This works out to about $2,060 per square foot of net lettable area.

GuocoLand also incurred a $23.3 million provision for foreseeable losses on development properties, mostly in Malaysia. The net forex loss amounted to $34.3 million.