SingLand, UIC report full-year losses for '08

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Published February 13, 2009

SingLand, UIC report full-year losses for '08

Their losses come on the back of fair-value losses on investment properties

By KALPANA RASHIWALA


SINGAPORE Land and its parent United Industrial Corporation (UIC) yesterday posted full-year losses on the back of fair-value losses on investment properties.

Singapore Land reported a $117.4 million group net loss for the year ended Dec 31, 2008, taking into account a $319.7 million fair-value loss based on year-end valuations of investment properties held by subsidiary companies. In contrast, in 2007, SingLand had booked $1.46 billion revaluation gains, resulting in net earnings of $1.36 billion.

SingLand's notice of recent valuations showed that the 999-year-leasehold SingLand Tower at Raffles Place was valued at $1.34 billion or $2,165 per square foot (psf) of net floor area as at end-2008, down almost 10 per cent from $1.488 billion or $2,404 psf as at end-2007. Clifford Centre nearby, also a 999-year property, was valued at $517 million or $1,886 psf as at end-2008, 8 per cent lower than the $562 million or $2,050 psf as at end-2007. The Gateway at Beach Road, on a site with about 74 years remaining lease, was appraised at $972 million or $1,294 psf as at end-2008, or 9 per cent lower than the $1.07 billion or $1,420 psf as at end-2007.

SingLand's group revenue rose 31 per cent to $355.3 million, due mainly to higher rental income and revenue from The Pan Pacific Singapore. 'Gross rental income at $231.8 million was higher by $44.4 million (24 per cent) attributable to higher rental rates. A full-year consolidation of the revenue of The Pan Pacific Singapore hotel (a wholly owned subsidiary since April 2007) and the improved room rates contributed to a $39.5 million increase to $117.4 million in gross revenue from the hotel,' SingLand said in its results statement.

Excluding the group's share of fair-value loss on investment properties held by associated companies of $8.1 million last year (2007: $44 million fair-value gain), share of results of associated companies increased by $12.5 million or 31 per cent due mainly to higher contribution from One Amber and The Sixth Avenue Residences residential projects with the progressive recognition of development profits on percentage of completion basis.

SingLand did not list its Q4 results in its full-year financial statement. Neither did parent UIC, which is currently the subject of a takeover bid by UOL Group. UIC posted a $74.6 million net loss for the year ended Dec 31, 2008, on the back of a $397 million revaluation loss on investment properties held by subsidiary companies.

In the preceding year, UIC booked $1.68 billion revaluation gains, taking its net earnings to $1.17 billion. In its latest results statement, UIC also said that excluding the group's share of fair-value loss on investment properties held by associated companies of $7.7 million last year (2007: $33.6 million fair-value gain), share of operating results of associated companies increased by $7.2 million or 21 per cent.

UIC's revenue rose 69 per cent to $892.3 million last year.

SingLand maintained its first and final dividend at 20 cents per share while UIC kept its payout at three cents per share.