http://www.businesstimes.com.sg/arch...sales-20140222

Published February 22, 2014

Full-year earnings at UIC, SingLand fall on lower residential sales

By Lynette Khoo [email protected]


UNITED Industrial Corporation (UIC) and its 80 per cent subsidiary, Singapore Land (SingLand), have posted declines in net profits and revenues for the year ended Dec 31, 2013, as both recorded fewer residential sales.

UIC's net profit for 2013 fell 19 per cent to $316.1 million, while separately listed SingLand reported a 17 per cent decline in net profit to $339.2 million.

Revenues at UIC slipped 14 per cent to $609.6 million while SingLand recorded a 22 per cent slump to $454 million.

The decrease in revenues was attributable to lower trading property sales, dragged by lower recognition of residential sales at The Excellence in Chengdu and The Trizon in Singapore.

Sales of trading properties at UIC fell 56 per cent to $120.7 million while SingLand's slumped 64 per cent to $96 million.

The declines were, however, mitigated by higher revenue at Pan Pacific Singapore Hotel following its re-opening in September 2012 after a renovation. SingLand recorded a 73 per cent increase in revenue from Pan Pacific hotel to $113.5 million.

Both UIC and SingLand also got a lift from the residential project Archipelago, each recording a $19.5 million share of results from the project.

Fair value gain on investment properties saw a dip, with UIC marking a 21 per cent fall to $196 million and SingLand recording a 4 per cent drop to $158.2 million, based on independent valuations as at Dec 31.

Both companies expressed caution for the office leasing, hotel and residential sectors.

"The office leasing market is not expected to improve to any great extent in the short to medium term," UIC said. "The hotel sector will continue to face challenges from new hotel room supply, manpower restriction and rising operating cost.

"Market sentiments for residential property would remain cautious with the continuing government property cooling measures."

But both companies noted that even with the projected increase in retail space, the retail rental market is expected to remain stable on the back of strong demand, healthy visitor arrivals and interest from international fast-fashion retail brands.

UIC and SingLand have proposed a first and final dividend of 3 cents per share and 20 cents per share, respectively.

Trading of shares in UIC and SingLand have been halted since Thursday. Both companies requested for the immediate trading halt "pending the release of an announcement".