reporter2
11-11-13, 13:12
http://www.businesstimes.com.sg/archive/saturday/premium/companies/others/uols-q3-earnings-6-935m-20131109
Published November 09, 2013
UOL's Q3 earnings up 6% at $93.5m
Modest office rental growth seen staying; stable retail leasing market expected
By Kalpana Rashiwala [email protected]
THANKS mainly to higher profit margins and a higher share of profits from joint-venture companies, UOL Group's third-quarter net profit rose 6 per cent to $93.5 million, from $87.8 million a year earlier.
The property and hospitality group's revenue for the July-September quarter slipped 6 per cent, however, to $261.8 million. The fall stemmed mainly from property developments as construction of various projects (including Double Bay Residences and Waterbank at Dakota in Singapore) was completed in 2012 or early 2013.
Revenue from all other segments recorded improvements. The increase was due mainly to revenue from Parkroyal on Pickering and Pan Pacific Serviced Suites Beach Road in Singapore, which opened in the first and second quarter of 2013 respectively, along with higher revenue from Parkroyal Darling Harbour and Parkroyal Yangon.
Commenting on its Q3 performance, the group said the share of profit of associated companies, excluding fair value gains of associated companies' investment properties, fell 11 per cent to $23.8 million - following the completion of the Terrene project in Bukit Timah in January.
But the group booked a $4.8 million share of profit from joint-venture companies in Q3 this year (mainly contributed by the Archipelago project in the Bedok Reservoir area), compared with a nearly $1.5 million loss a year earlier.
Gross profit margin improved to 50 per cent in Q3 from 43 per cent the previous year, mainly due to lower revenue from property development, which has a higher cost margin.
Earnings per share rose to 12.14 cents from 11.43 cents in Q3 2012. Net asset value per share stood at $8.51 as at end-September 2013, up from $7.98 as at end-December 2012.
The group said its gearing ratio edged up to 0.31 as at Sept 30, 2013, from 0.28 as at end-December 2012. This was primarily due to additional borrowings for the acquisition of shares in Pan Pacific Hotels Group held by non-controlling shareholders in Q3 2013 and the land parcel at Sengkang West Way.
The group said that as at end-October, 330 units have been sold at the recently launched 445-unit Thomson Three condo in Upper Thomson Road.
Looking ahead, UOL said the introduction of the Total Debt Servicing Ratio framework in June will further moderate demand for residential properties.
On a more positive note, rentals of office space are expected to maintain modest growth. The retail leasing market, which grew by 0.4 per cent in third quarter 2013, is expected to be stable.
"The performance of the group's hotels in Singapore is expected to be affected by the increasing supply of hotel rooms and slower visitor growth. Uncertainties in the global economic environment will continue to affect the hotel industry in the Asia Pacific region," UOL said.
In the first nine months of this year, net profit rose 74 per cent year on year to $596.6 million. This was helped by fair value gains and other gains amounting to $402.6 million, up from $90.2 million in the year-ago period. Revenue, however, slipped 7 per cent to $813.9 million.
The counter closed 14 cents lower at $6.36 yesterday, before the results were released.
Published November 09, 2013
UOL's Q3 earnings up 6% at $93.5m
Modest office rental growth seen staying; stable retail leasing market expected
By Kalpana Rashiwala [email protected]
THANKS mainly to higher profit margins and a higher share of profits from joint-venture companies, UOL Group's third-quarter net profit rose 6 per cent to $93.5 million, from $87.8 million a year earlier.
The property and hospitality group's revenue for the July-September quarter slipped 6 per cent, however, to $261.8 million. The fall stemmed mainly from property developments as construction of various projects (including Double Bay Residences and Waterbank at Dakota in Singapore) was completed in 2012 or early 2013.
Revenue from all other segments recorded improvements. The increase was due mainly to revenue from Parkroyal on Pickering and Pan Pacific Serviced Suites Beach Road in Singapore, which opened in the first and second quarter of 2013 respectively, along with higher revenue from Parkroyal Darling Harbour and Parkroyal Yangon.
Commenting on its Q3 performance, the group said the share of profit of associated companies, excluding fair value gains of associated companies' investment properties, fell 11 per cent to $23.8 million - following the completion of the Terrene project in Bukit Timah in January.
But the group booked a $4.8 million share of profit from joint-venture companies in Q3 this year (mainly contributed by the Archipelago project in the Bedok Reservoir area), compared with a nearly $1.5 million loss a year earlier.
Gross profit margin improved to 50 per cent in Q3 from 43 per cent the previous year, mainly due to lower revenue from property development, which has a higher cost margin.
Earnings per share rose to 12.14 cents from 11.43 cents in Q3 2012. Net asset value per share stood at $8.51 as at end-September 2013, up from $7.98 as at end-December 2012.
The group said its gearing ratio edged up to 0.31 as at Sept 30, 2013, from 0.28 as at end-December 2012. This was primarily due to additional borrowings for the acquisition of shares in Pan Pacific Hotels Group held by non-controlling shareholders in Q3 2013 and the land parcel at Sengkang West Way.
The group said that as at end-October, 330 units have been sold at the recently launched 445-unit Thomson Three condo in Upper Thomson Road.
Looking ahead, UOL said the introduction of the Total Debt Servicing Ratio framework in June will further moderate demand for residential properties.
On a more positive note, rentals of office space are expected to maintain modest growth. The retail leasing market, which grew by 0.4 per cent in third quarter 2013, is expected to be stable.
"The performance of the group's hotels in Singapore is expected to be affected by the increasing supply of hotel rooms and slower visitor growth. Uncertainties in the global economic environment will continue to affect the hotel industry in the Asia Pacific region," UOL said.
In the first nine months of this year, net profit rose 74 per cent year on year to $596.6 million. This was helped by fair value gains and other gains amounting to $402.6 million, up from $90.2 million in the year-ago period. Revenue, however, slipped 7 per cent to $813.9 million.
The counter closed 14 cents lower at $6.36 yesterday, before the results were released.