SingLand's Q3 net profit up 2% but UIC's gains drop 3%

Singapore Companies
Published November 11, 2006

SingLand's Q3 net profit up 2% but UIC's gains drop 3%

UIC blames fall on higher selling costs of its residential projects

By KALPANA RASHIWALA

SINGAPORE Land yesterday posted a 2 per cent increase in Q3 net profit to $23.2 million, while parent United Industrial Corporation (UIC) reported a 3 per cent dip in net earnings for the same period to $17.8 million.

SingLand - owner of Marina Square mall and office buildings like The Gateway, Singapore Land Tower and Clifford Centre - said revenue for the third quarter ended Sept 30, 2006, rose 20 per cent to $55.6 million. This was due to a $10 million increase in rental income, achieved largely as a result of a higher contribution from Marina Square following substantial completion of remodelling works at the end of last year.

Share of associates' results in Q3 this year declined by $2.8 million or 32 per cent, largely because of lower contribution from the Waterfront residential project in Hong Kong, partly offset by higher contribution from Marina Mandarin hotel, whose operation in the same year-ago period had been affected by renovation works.

SingLand's Q3 earnings per share increased 0.1 cent to 5.6 cents. For the first nine months of this year, SingLand's net earnings rose 3 per cent to $71.5 million.

It said the Singapore office market is still bullish and rentals are set to rise further, underpinned by tight supply and strong demand. Shop space demand is also seen to be strong on the back of improving consumer confidence

UIC said that despite a 17 per cent jump in Q3 revenue to $76.4 million, its bottom line declined by $600,000 or 3 per cent largely because of higher selling costs relating to sales of the group's residential projects, as well as higher income tax expense. The group's Q3 earnings per share remained unchanged at 1.3 cents.

For the first nine months of 2006, UIC's bottom line suffered a 17 per cent or $10.8 million drop to $54.1 million, due mainly to the absence of the one-off gain of $12.4 million on sale of investment properties in June 2005 which had boosted UIC's net earnings in the first nine months of last year.