Guocoland says net earnings dropped 64% to $21.6 million for the second quarter ended December 31, 2010 (FY2010) on the back of a 55% decrease in revenue to $162.8 million. The was led by lower sales contribution from its development projects in China. Meanwhile, share of profit from associates increased by $5.9 million in 2QFY2010, mainly due to higher share of profit from a Singapore associate after the successful sale of a penthouse unit in the quarter.
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The following companies may have unusual price changes in Singapore trading today. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index dropped 1% to 3,229.27.
GuocoLand, the developer controlled by Malaysian tycoon Quek Leng Chan, said it will review setting up a real estate investment trust as a possible strategy to extract value from its property portfolio. The company said it currently has no plans to establish such a trust, responding to a report in The Business Times newspaper. GuocoLand is considering listing an office real estate investment trust and another trust holding retail assets, the newspaper reported today, without citing anyone.
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Singapore-listed developer GuocoLand, a firm linked to Malaysian billionaire Quek Leng Chan, said on Wednesday it had no plans to set up a real estate investment trust (REIT), dismissing a report in the Business Times newspaper.
GuocoLand (GUOC.SI) rose as much as 2.7% on Wednesday after paper said it may float two real estate investment trusts with assets of up to $8 billion in the next 3-5 years.
Malaysian tycoon Quek Leng Chan’s Singapore-listed unit GuocoLand Ltd (GUOC.SI) may float two real estate investment trusts (REITs) with total assets of up to US$8 billion ($10.4 billion) over the next 3-5 years, The Business Times reported today.
The assets would include one office and the other retail REIT-holding assets in Singapore, China, Malaysia and possibly Vietnam, the newspaper said.
Francis Siu Wai Keung has been appointed non-executive independent director/audit committee member wef Dec 1
Work experience: Senior partner, KPMG Beijing Office; senior partner, Northern Region, KPMG China
GuocoLand says the tender submitted by its wholly-owned subsidiaries, Belmeth, Perfect Eagle and Guston, for a land parcel at Peck Seah Street/Choon Guan Street has been accepted by the Urban Redevelopment Authority at a bid price of $1,708,080,000.
The 99-year leasehold site has a land area of 15,022.6 square metres with an gross floor area (GFA) of 157,738 square metres and a permissible building height of 280 metres above mean sea level. The site occupies a prime location in the Tanjong Pagar area within the Central Business District, and fronts onto a key road junction between several major arterial roads – Maxwell Road, Cecil Street and Anson Road / Robinson Road, offering prominent street frontage and a high degree of visibility for the development on the site.
GuocoLand (F17.SG) down 10.2% at $2.29, with orderbook quotes suggesting limited interest in thinly-traded stock; fall today erases most of Tuesday’s 13% surge ahead of bidding results for URA’s land above Tanjong Pagar MRT station, according to Dow Jones.
Lim & Tan Securities, which keeps a Neutral stance on stock, says GL’s $1.7 billion bid is $180 million or 11.8% over next highest bid.
Property consultant estimates suggest $2,400–$,2500 psf selling price for residential units (likely 30% of GFA) which “seems aggressive”. If fully undertaken alone, would be firm’s largest development in Singapore, comparable to City Developments’ (C09.SG) South Beach project.
Broker would not rule out participation by controlling shareholder Guoco Group.
Lim & Tan Securities says, total development costs estimated at $3 billion, which is approximately GuocoLand’s current market cap. After recent 1-for-3 rights issue to raise $532 million, “more may be needed” with share price “likely to come under some pressure.”
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GuocoLand (F17.SG) down 10.6% at $2.28 after rising 13% Tuesday; stock fairly illiquid with volume today of just 196,000 shares.
Tuesday’s gain came before company said it had submitted $1.7 billion bid for Tanjong Pagar land parcel for mixed development of 1.7 million square foot GFA.
UOB KayHian puts its Sell rating under review, has $1.95 price target; says “whopping” bid above market forecast of $1–$1.4 billion.
Assuming flat 15% margin, says site expected to rake in net profit of $450 million or $0.31 (12.2%) accretion to RNAV/share of $2.44.
Adds, “gearing level is expected to jump significantly from the current levels of 0.58X (post rights issue).”
URA to announce tender award in due course; next highest bid was 11.8% lower from partnership comprising Keppel Land (K17.SG), Hongkong Land (H78.SG), Cheung Kong (0001.HK).
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Singapore shares may rise on Thursday, supported by news the government expects GDP to grow around 15% this year, which is at the higher end of previous expectations. The successful IPO of General Motors (GM.N) and hopes Ireland may soon find a solution to its debt woes are also likely to lift investor confidence.
The following companies may have unusual price changes in Singapore trading today, say Thomson Reuters and Bloomberg. Stock symbols are in parentheses, and share prices are from the previous close. The market was closed yesterday for a holiday. Singapore’s Straits Times Index fell 0.8% to 3,212.10.
Singapore shares may see a weak start on Monday after the Dow Jones <.DJI> fell on concerns over bank exposure to the US mortgage market and the Singapore Exchange (SGXL.SI) reported a worse-than-expected fall in quarterly net profit. Singapore’s Straits Times Index gained 0.3% to 3,204.27 on Oct 15.
Shares of Singapore Exchange, Asia’s second-largest listed bourse by market value, may open lower after it reported its July-September net profit fell 21% to $74.2 million due to lower trading volumes and higher technology-related expenses.
Singapore shares may see a weak start on Thursday after Wall Street’s main indices ended lower overnight, with September’s rally losing some steam. Stocks may also come under pressure after the US passed legislation to pressure China to let its currency rise faster, fanning the flames of a long-running dispute over trade and jobs.
Singapore’s benchmark Straits Times Index <.FTSTI> rose 0.28% on Wednesday to 3,106.03 points. Stocks and factors to watch:
GuocoLand Limited (GLL) says wholly-owned subsidiary, GuoSon Investment Company Limited (GICL), together with Guoco Investments (China) (Glnv), a wholly-owned subsidiary of Guoco Group Limited (GGL), has tendered successfully in the proportion of 50:50 for a land parcel known as Plot 9 in Changfeng, Shanghai. GGL is the parent company of GLL.
The aggregate purchase consideration for the site is RMB3.04 billion ($598.9 million or RMB24,812 psm per plot). GICL and Glnv have equally paid for a deposit of RMB382 million ($75.3 million) for the site.
Property GuocoLand says its unit has obtained a Shariah-compliant financing facility of up to $50 million from CIMB Bank Berhad, Singapore. The Islamic financing facility is for a period of three years. This financing facility uses the Commodity Murabahah structure, one of the common structures used in Islamic financing, whereby the creation of debt is facilitated through a trade contract of an underlying asset.
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Guocoland (F17.SG) unfazed by dilutive rights issue, Singapore’s latest measures to cool property market, according to Dow Jones.
Shares +2.3% at $2.19 as investors focus on developer’s return to profitability in June quarter, higher dividend payout. Fiscal 4Q10 net profit at $52.0 million vs $73.1 million loss year earlier on higher margins, gain from asset sale, absence of revaluation loss on investment properties.
The following companies may have unusual price changes in Singapore trading today. Stock prices are from the previous close. Singapore’s Straits Times Index gained 0.4% to 2,938.74.
Developers: Singapore will announce more steps to cool the property market after previous measures failed to keep prices from rising, Prime Minister Lee Hsien Loong said yesterday.
GuocoLand has proposed issuing about 296 million new shares at $1.80 each, which represents a discount of about 15.9% to its last closing price of $2.14.
Guocoland (F17.SG) is 2.6% higher at $2.35 as developer’s stronger March-quarter earnings, cash position lure back buyers.
