Drastically lowered fair value gain from investment properties and a dip in full-year turnover were to blame, said the developer.
Hong Leong Group member Guocoland Limited posted a 48% drop in full-year net profit to SGD 63.19 million for FY 2012. For last year, the developer recorded SGD 122.01 million in net profit.
The steep decline happened despite a strong fourth quarter; the developer recorded a 47% y-o-y increase in net profit to SGD 62.99 million for Q4, which ended on 30 June.
Guocoland said that the fall in full-year profit was attributed to a drastic reduction in fair value gains from its investment properties, which amounted to only SGD 3.9 million for FY 2012. Over the same period last year, fair-value gains from investment properties were recorded at SGD 58.8 million.
Turnover for the year also slid by one percent to SGD 678.5 million, added the developer. This was caused by lower revenue from its business in China, although improved revenue from its Singapore residential projects helped to offset the decline.
As a result, full-year earnings per share were also slashed to 5.69 cents from 11.98 cents last year.
Higher revenue from Singapore residential projects, as well as from its office development Shanghai Guoson Centre helped lift Q4 results, increasing turnover from to SGD 319.73 million from a restated SGD 93.98 million over Q4 2011.
Q4 earnings per share went up to 5.68 cents from 3.85 cents.
Tags: Commercial real estate, Business space