Goodland Group (SGX:5PC): FY2025 Results — Margin Recovery, Revaluation Gains & What Investors Should Watch Next
Goodland Group (SGX:5PC) FY2025 Results — Asset-Rich Developer Where Revaluation Gains Do the Heavy Lifting
A plain-English breakdown of Goodland’s FY2025 revenue, margins, cash flows and revaluation gains — and what they might mean for deep-value Singapore investors.
Published: 30 November 2025 | Based on: Goodland Group Limited FY2025 results announcement (SGX)
Key Takeaways (If You Only Have 30 Seconds)
- Revenue fell sharply from S$10.65m → S$6.06m (down about 43%) due to fewer development property sales.
- Gross profit almost doubled from S$0.70m → S$1.32m; gross margin improved from about 7% → 22% as more profitable units were recognised.
- Profit after tax swung back to profit: around S$1.38m vs a loss of about S$2.02m last year — but mainly thanks to fair value gains.
- Investment property revaluation gains of about S$5.43m (vs S$3.91m) drove most of the reported earnings; core operating profit remains thin.
- The balance sheet is asset-rich but cash-light — development properties of about S$234.3m and investment properties of around S$104.7m, funded in part by higher bank borrowings of about S$106.3m.
- Operating cash flow was deeply negative at roughly −S$21.7m, mainly from heavy development spending of around S$22.8m.
- A small final dividend of S$0.0015 per share was declared, but yield remains minimal given the capital needs of the business.
Quick Facts
Company: Goodland Group Limited
SGX Ticker: 5PC
Financial period: FY2025 (full year)
Main business: Property development and investment in Singapore and Malaysia, plus rental income from investment properties.
Key geographies: Singapore and Malaysia (development and investment properties, rental exposure).
Source documents: SGX FY2025 results announcement
1. Big Picture — Asset-Backed Developer With Lumpy Earnings
Goodland Group (SGX:5PC) is a small-cap property developer and landlord with projects and investment properties across Singapore and Malaysia. FY2025 was a year where:
- development revenue dropped sharply as fewer projects were recognised,
- gross margin improved as higher-margin units were booked,
- rental income stayed steady, and
- fair value gains on investment properties did most of the heavy lifting for the bottom line.
On paper, Goodland looks cheap on a price-to-book basis, with net asset value (NAV) per share of around 51.11 cents versus a much lower share price. But the group also carries meaningful debt, heavy development spending and exposure to property cycles and Malaysia FX — risks that investors must not ignore.
2. Revenue — Development Slowdown, Rental Income Stable
Group revenue fell from about S$10.65m → S$6.06m, a drop of roughly 43%.
The main drivers were:
- Lower recognition of development projects as fewer units and phases reached the revenue-recognition stage.
- Minimal construction activity compared to the prior year.
- Rental income remained steady at about S$1.18m, providing a recurring base of revenue.
This kind of lumpiness is typical for developers — but it also means that year-to-year revenue can swing quite widely, depending on project timing.
Imagine you sell Lego houses that take a few years to build. Some years you finish many houses and your allowance looks big. Other years you finish only a few, so your pocket money looks small. Goodland is like that — this year, fewer “Lego houses” were finished, but the rent from the houses they already own kept coming in steadily.
- The revenue drop is primarily project-timing related, not necessarily a collapse in demand — but it does raise visibility and cash-flow questions.
- Steady rental income is a small but important stabiliser in an otherwise lumpy revenue profile.
- Investors should focus more on multi-year project pipelines and pre-sales than on a single year’s revenue line.
- Lumpy revenue, combined with high debt, amplifies liquidity and refinancing risk if project progress stalls.
3. Margins — Strong Recovery From a Low Base
Despite lower revenue, gross profit improved significantly:
- Gross profit increased from about S$0.70m → S$1.32m (up roughly 89%).
- Gross margin rose from around 7% → 22%.
Key reasons mentioned:
- Recognition of higher-margin units and phases.
- A better mix between Singapore and Malaysia units.
- Completion of more profitable stages of existing projects.
However, these margins are still very project-dependent and should not be mistaken for a stable, recurring margin profile like a consumer business.
If you sell two kinds of bubble tea — one cheap, one premium — your profit per cup looks better when you sell more premium cups. Goodland sold fewer “cups” this year, but more of them were premium, so each dollar of sales earned more profit. That’s why the margin improved even though total sales fell.
- The margin uplift is encouraging, but largely reflects which projects and phases happened to be recognised this year.
- Investors should avoid extrapolating a 22% margin as “the new normal” without understanding the development pipeline.
- For developers, margin sustainability is tied to land-bank quality, pricing power and construction cost control over the entire project life.
- On a risk lens, Goodland remains sensitive to cost overruns and selling-price pressure in future launches.
4. Profitability & Revaluation Gains — Back in the Black, But Mainly on Paper
After a loss in FY2024, Goodland achieved a profit after tax of about S$1.38m in FY2025, compared with a loss of approximately S$2.02m previously.
However, the main driver was not core development or rental profit. It was a S$5.43m fair value gain on investment properties (versus S$3.91m in FY2024).
In other words, more than 100% of reported profit came from non-cash revaluation gains. Without these, underlying operating profit remains thin.
Imagine your parents say your family HDB flat is now worth more than last year. On paper, your family is richer. But your pocket money doesn’t change unless you actually sell the flat or rent it out higher. Goodland’s profit this year is a bit like that — most of it comes from saying “our buildings are worth more now”, not from selling more units or collecting much higher rent.
- Revaluation gains are non-cash and can reverse in weaker markets; they should not be treated as core earning power.
- When over 100% of profit comes from fair value gains, investors should focus on cash flows and debt service, not just the P&L.
- Revaluation-led profitability is common in asset-heavy developers, but it increases the sensitivity of reported earnings to valuer assumptions.
- For long-term investors, a clearer path to recurring, cash-based profit would improve the quality of the investment case significantly.
5. Balance Sheet / Debt — Asset-Rich, Cash-Light, Leveraged
As at FY2025, Goodland’s key balance sheet items looked roughly like this:
- Development properties: about S$234.3m (up from S$216.3m).
- Investment properties: around S$104.7m (up by roughly S$6.4m).
- Associates: around S$0.85m, lower due to dividends and FX movements.
Liquidity and gearing, however, are the main concerns:
- Cash & equivalents: about S$5.19m (down from S$9.11m).
- Bank borrowings: around S$106.3m (up from S$90.9m).
- NAV per share: about 51.11 cents, slightly down from 51.95 cents due to dividends and FX impact.
Goodland is clearly asset-backed, but those assets sit primarily in ongoing development projects and long-term investment properties — not in easily accessible cash.
Picture a family that owns many buildings and pieces of land but doesn’t keep much cash in the bank. To build and improve the properties, they borrow more from the bank. On paper they are “rich”, but every month they must pay the bank and construction bills. If anything goes wrong with selling the properties, money could feel tight very quickly.
- The combination of high development and investment property values with rising bank borrowings makes this very much a leveraged asset play.
- Falling cash and rising debt heighten refinancing and covenant risk, especially in a higher-rate environment.
- NAV per share stability is a positive, but investors must assess how resilient those valuations are to interest-rate and market shocks.
- For value investors, the key question is whether the asset backing more than compensates for leverage and liquidity risk.
6. Cash Flow — Heavy Operating Outflow Driven by Development Spend
FY2025 saw a sharp operating cash outflow of about S$21.7m, driven primarily by development expenditure of roughly S$22.8m.
Goodland funded this mainly through:
- about S$20.5m of new bank loan drawdowns, and
- approximately S$5.1m of dividends received from associates.
This financing pattern — large cash outflows for projects, funded by new borrowings and associate dividends — is fairly typical for developers. But it also increases reliance on banks and capital markets.
Think of building a big Lego city. You have to spend a lot of money upfront on pieces before you can sell the finished city to someone else. To buy those Lego pieces, you borrow from a friend and use some prize money from another game. Until the city is sold, your wallet looks very empty even though you’re “investing” in something big.
- Negative operating cash flow is not automatically bad for developers, but the scale of outflow matters relative to balance-sheet strength.
- Goodland’s development spend increases future profit potential but also raises execution and market risk.
- Reliance on new bank loans and associate dividends to plug cash gaps highlights how dependent the business is on continued financing access.
- For conservative investors, sustained negative operating cash flow alongside high leverage is a key red flag to monitor closely.
7. Segment Performance — Development vs Rental vs Investment Properties
The disclosure highlights two broad pillars: development activities and investment properties/rental income.
- Development properties: Capital tied up climbed to about S$234.3m, reflecting ongoing projects and land bank.
- Investment properties: Around S$104.7m in value, generating rental income and revaluation gains.
- Rental income: Stable at roughly S$1.18m, offering more predictable, recurring cash flows than development sales.
Profit contribution in FY2025 was dominated by the fair value gains from investment properties, rather than by core development or rental profits.
Think of Goodland as having two types of Lego sets. One type they build and then sell (development). The other type they keep and rent out, hoping the sets become more valuable over time (investment properties). This year, most of the “marks on the report card” came from people saying, “Your kept Lego sets are worth more now,” not from actually selling a lot more sets.
- Development provides upside but is inherently volatile; rental and investment properties provide stability but rely heavily on valuation assumptions.
- The combination makes Goodland best viewed as a hybrid of developer and property owner, not a pure-play of either.
- In FY2025, economic value creation is harder to judge because a large portion of reported profit is non-cash.
- Tracking the yield and occupancy of investment properties, alongside sales and margins of development projects, will be crucial going forward.
8. Outlook — Cautious Optimism, But Execution Will Decide
Goodland notes improving sentiment in Singapore’s private residential market, with URA prices up about 0.9% this quarter, and a moderate growth outlook in Malaysia. Management describes itself as “cautiously optimistic”, focusing on:
- delivering existing projects on time and within budget,
- managing costs amid higher interest rates and inflation,
- navigating FX risk from Malaysian exposure, and
- maintaining access to financing for ongoing development.
FY2026 performance will hinge heavily on sales velocity, construction progress, loan availability and FX movements, rather than on any single one-off event.
9. Ratios & Trend Snapshot — Revenue Down, Margins and Profit Rebound (On Paper)
A simplified comparison of FY2024 vs FY2025:
| Metric | FY2024 | FY2025 | Trend |
|---|---|---|---|
| Revenue (S$m) | 10.65 | 6.06 | Down ~43% |
| Gross profit (S$m) | 0.70 | 1.32 | Up ~89% |
| Gross margin (%) | ~7% | ~22% | Recovering strongly |
| Profit after tax (S$m) | −2.02 | 1.38 | From loss to profit (revaluation-driven) |
| Revaluation gains (S$m) | 3.91 | 5.43 | Higher fair value uplift |
| NAV per share (cents) | 51.95 | 51.11 | Slightly lower |
| Bank borrowings (S$m) | 90.9 | 106.3 | Debt load increased |
10. FAQ
Q1. Is Goodland Group financially stable?
Goodland is asset-heavy with substantial development and investment properties, but it is also cash-light and leveraged. Stability depends on continued bank financing, successful project delivery and supportive property markets.
Q2. Are FY2025 profits sustainable?
Not in their current form. Core profits from development and rental are relatively thin. FY2025 profitability relied heavily on revaluation gains, which are non-cash and can reverse if property valuations weaken.
Q3. Is the dividend meaningful?
No. The final dividend of S$0.0015 per share translates into a very small yield relative to NAV and reflects management’s need to conserve cash for ongoing projects and debt service.
Q4. What are the biggest risks for investors?
Key risks include high leverage, heavy cash outflows linked to the development cycle, lumpy revenues, reliance on revaluation gains, rising interest rates, and Malaysia Ringgit exposure, which can create FX translation losses.
Q5. What should investors track going forward?
Watch for project sales velocity and margins, debt and refinancing terms, the pace of development spend, rental occupancy and yields, and broader property market indicators in both Singapore and Malaysia.
11. My Overall Take as The Accounting Investor
If I had to explain Goodland to an 11-year-old, I’d say: “This is a company that owns a lot of buildings and land, but borrows quite a bit of money to build more. This year, most of its ‘good results’ came from people saying its buildings are worth more, not from selling a lot more homes for cash.”
From an accounting-trained investor’s lens, I’d summarise it like this:
- Business quality: A mix of cyclical development and more stable rental/investment property income. Not a smooth compounding machine, but a project-and-cycle-driven business.
- Earnings quality: FY2025 profit is heavily revaluation-driven. Cash-based earnings from core operations are modest relative to the balance sheet size.
- Balance sheet: Clearly asset-rich but cash-light, with NAV per share around 51 cents, offset by rising bank borrowings and limited cash.
- Cash flow: Large negative operating cash flow from development spend, funded by higher debt and associate dividends — typical for developers but risky if markets turn.
- Risk–reward: Fits the profile of a deep-value, asset-backed property micro-cap that may trade at a discount to NAV. Potential upside exists if projects sell well and valuations hold, but leverage, FX and liquidity risks are significant.
- Investor fit: More suitable, if at all, for experienced investors comfortable with property cycles, high gearing and long holding periods. For most retail investors seeking stability and cash yield, this is likely a “monitor/watchlist” name rather than an immediate buy candidate.
Personally, I’d keep Goodland on a watchlist, focusing on project progress, debt trends and cash flows — and only consider it with careful sizing as part of a broader, diversified portfolio of special situations.
About The Author
The Accounting Investor is a Singapore-based investment blogger and Chartered Accountant–trained analyst who enjoys explaining company accounts in plain English for busy working adults (and curious teens).
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Disclaimer: This post is for education and general information only. It is not a recommendation to buy or sell any security, and it does not take into account your individual financial situation, objectives or risk tolerance. Always do your own research or consult a licensed financial adviser before making any investment decisions. The author may or may not hold shares in the companies mentioned at the time of writing and is under no obligation to update this post.
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