http://www.businesstimes.com.sg/sub/...05540,00.html?

Published November 11, 2010

PROPERTY EARNINGS

UOL posts 18% rise in Q3 net profit

Revenue rises 7% on recognition of property sales

By JOYCE HOOI


UOL Group recorded an 18 per cent increase in net profit for its third quarter, from $105.6 million to $124.7 million.

Revenue rose 7 per cent year on year, from $323.9 million to $345.2 million.

The rise in turnover was attributed to the progressive recognition from the sale of the group's development properties such as Duchess Residences, Meadows@Peirce, Double Bay Residences, Breeze by the East and Waterbank at Dakota - as well as the improved performance of its hotel operations.

For the nine months ended Sept 30, 2010, the group's net profit shrank 14 per cent from $417.2 million to $360.4 million. The year-on-year decrease was attributed to a negative goodwill gain of $279.2 million from the acquisition of UIC shares in 2009's nine-month period.

It recorded a 51 per cent increase in pre-tax profit before fair value and other gains, from $282.3 million to $427.4 million.

Revenue for the nine-month period grew 25 per cent year-on-year, from $734.3 million to $914.9 million.

Earnings per share for the quarter stood at 15.95 cents, up from 13.31 cents for the corresponding period a year ago.

'The successful sell-out of our new projects this year, Waterbank at Dakota and Terrene at Bukit Timah will help to sustain earnings visibility in the coming year,' said Gwee Lian Kheng, chief executive of UOL Group.

'Our recent acquisition of a land parcel in Changfeng, Shanghai through a joint venture with Kheng Leong and Singapore Land will further enhance our earnings base from the rapidly growing residential market in China.'

UOL's subsidiary, Pan Pacific Hotel Group, also posted its Q3 earnings yesterday, in which net profit rose 19 per cent to $11.98 million. Revenue for the quarter grew 12 per cent to $81.6 million, as all of its hotels saw a rise in revenue per available room, with the exception of the ones in Penang and Suzhou.

For the nine months ended Sept 30, 2010, Pan Pacific Hotels saw its bottom line increase by 45 per cent to $39.2 million. It was bolstered partly by a $4.8 million fair value gain as opposed to a $1.5 million fair value loss on its investment properties from the year before.

Its earnings per share the quarter stood at two cents, up from 1.68 cents for Q3 2009.

UOL shares ended four cents lower at $4.70 yesterday, while Pan Pacific Hotel shares ended at $1.65, down a cent.