SingLand, UIC report higher Q3 net, bucking industry trend

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Published November 15, 2008

SingLand, UIC report higher Q3 net, bucking industry trend

By KALPANA RASHIWALA


SINGAPORE Land and its parent United Industrial Corporation have posted improved bottom lines for the third quarter and the first nine months of this year, defying the general trend among property groups this reporting season.

SingLand's net earnings for Q3 ended Sept 30 were $39.8 million, or 32 per cent higher than in the same period last year.

Revenue grew 25 per cent to $89.7 million, benefiting from higher rental income and higher revenue from the Pan Pacific Singapore hotel operations. Gross revenue from hotel operations rose 21 per cent to $28 million, due mainly to higher room rates and occupancy.

Gross rental income at $60.1 million was a 27 per cent improvement from a year earlier on the back of higher rents.

A major office landlord, SingLand owns Singapore Land Tower and Clifford Centre in Raffles Place, The Gateway on Beach Road, SGX Centre 2 in Shenton Way and Abacus Plaza and Tampines Plaza in Tampines Finance Park. It also has a majority stake in Marina Square.

SingLand's Q3 bottom line was also boosted by a 55 per cent or $5 million escalation in its share of results of associated companies to $14.1 million, due mainly to a higher contribution from The Sixth Avenue Residences and One Amber residential projects, with the progressive recognition of profits on a percentage-of-completion basis.

SingLand's earnings for the first nine months rose 54 per cent to $141.5 million, helped by a $54.6 million fair-value gain on investment properties.

UIC posted a 90 per cent year-on-year jump in Q3 net profit to $48.3 million, with revenue rising 56 per cent to $212.2 million. It attributed the higher top line largely to higher sale of properties held for sale, as well as to improvements in rental income and revenue from Pan Pacific Singapore.

Sales from properties held for sale swelled 136 per cent or $56.5 million, due mainly to progressive sales recognition on a percentage-of-completion basis of the Tianjin Jun Long Square development in China which comprises a hotel, serviced apartments, offices and a mall, and the Park Natura and Northwood condos in Singapore.

The share of results of associated companies doubled to $12.3 million in Q3, on a higher contribution from The Sixth Avenue Residences and The Regency @ Tiong Bahru residential projects, with progressive recognition of development profits on percentage-of-completion basis.

In the first nine months of this year, UIC's net earnings increased 67 per cent to $126.7 million, helped by a $31.9 million fair-value gain on investment properties. Revenue rose 64 per cent to $582.6 million.

UIC and SingLand did not book fair-value gains on investment properties for Q3.

Both UIC and SingLand said the office and retail rental markets, as well as the residential property market, are expected to be weak amid the global financial turmoil and the economic downturn.

UIC's net asset value per share was $2.48 as at Sept 30, up six cents from $2.42 a year earlier. SingLand's NAV per share was $10.07 at Sept 30, 2008, a gain of 15 cents from $9.92 at end-2007.

On the stock market yesterday, SingLand closed one cent higher at $3.57, while UIC ended five cents lower at $1.09.