UOL Q3 profit up 44 per cent

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Published November 14, 2009

UOL Q3 profit up 44 per cent

Increase due to gains from Nassim Park Residences, associate UIC

By KALPANA RASHIWALA


UOL Group's third-quarter net profit has risen 44 per cent year on year to $105.6 million. Revenue increased 21 per cent to $323.9 million, thanks to progressive recognition of revenue from development properties.

UOL's bottom line received a fillip from a tripling in share of profits of associated companies to $48.2 million from $15.1 million for Q3 2008.

This was on the back of higher contributions from the progressive completion of Nassim Park Residences (in which UOL has a half share) and UOL's 31.9 per cent share of the profit of United Industrial Corporation, which became an associated company this year.

Revenue from property development rose 49 per cent to $203.5 million, accounting for nearly two-thirds of total group revenue. Among the projects that contributed to UOL's Q3 report card were two new launches this year - Double Bay Residences and Meadows@Peirce, which have sold a total of 937 units to date.

Rental income from investment properties rose 9 per cent on the back of higher occupancy and rental reversions for most of the group's investment properties. However, revenue from hotel operations fell 13 per cent amid the decline in tourism markets.

UOL group chief executive Gwee Lian Kheng said: 'Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs.'

In the first nine months of 2009, UOL's net profit rose 60 per cent to $417.2 million. Revenue increased 15 per cent to $734.3 million. Shareholder funds rose 19 per cent to $4.04 billion as at Sept 30, 2009 - on the back of fair-value gains on available-for-sale financial assets, the group's operating profits for the first nine months of this year, and recognition of negative goodwill and capital reserves arising from the acquisition of additional interest in UIC. Consequently, net tangible asset backing per share rose to $5.11, from $4.22 at end-2008. UOL's gearing ratio improved to 0.39 from 0.42 over the same period.

UOL's hotel arm, Pan Pacific Hotels Group (formerly known as Hotel Plaza), posted a 25 per cent year-on-year drop in Q3 net earnings to $10.1 million on a 6 per cent dip in revenue to $72.8 million.

Nine-month net profit slid 39 per cent to almost $27 million. Revenue fell 12 per cent to $205.1 million. Pan Pacific said that it expects the business climate to remain challenging.

In the stock market yesterday, UOL closed unchanged at $3.29 yesterday while Pan Pacific Hotels ended one cent higher at $1.35.

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November 16, 2009 Monday

Housing sales help boost UOL profits by 44%

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UOL's revenue rose 21 per cent, helped by strong take-up for new residential launches such as Meadows@Peirce (above) and Double Bay Residences. -- ST FILE PHOTO

UNITED Overseas Land (UOL) reported that profits for the third quarter ended Sept 30 rose 44 per cent to $105.6 million due to the strong take-up for new residential launches - Meadows@Peirce and Double Bay Residences.

These two projects have sold a combined 937 units to date, the group said last week.

The bottom line was helped by a higher contribution from associated companies, including United Industrial Corporation in which UOL has raised its stake to 32 per cent.

Revenue jumped 21 per cent to $323.9 million with revenue being progressively recognised

from development properties. In addition to Meadows@Peirce and Double Bay Residences, other properties included Duchess Residences, Southbank and The Regency at Tiong Bahru.

Revenue from property development contributed about two-thirds of total revenue. Other sources of revenue included hotel operations and property investments.

UOL group chief executive Gwee Lian Kheng said: 'We are pleased with our third-quarter results. Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs. Moving forward, we can also expect a more stable growth in the Singapore residential market with the reinstatement of the confirmed list of Government Land Sales Programme.'

He added: 'In spite of the challenging office and retail markets in Singapore, we managed to maintain higher occupancy and rental rates for most of our investment properties.

'As the economy recovers, the worst may be over in general for the hospitality industry and we are hopeful of seeing an improvement in the medium term.'

Earnings per share for the quarter rose from 9.24 cents last year to 13.32 cents.

Net tangible asset per share rose to $5.11 as of Sept 30, up from $4.22 as of Dec 31, while gearing improved to 0.39.

UOL shares ended unchanged at $3.29 last Friday, with one million shares changing hands.