http://www.businesstimes.com.sg/arch...e-uol-20140508

Published May 08, 2014

Housing demand, prices will continue to moderate: UOL

Group chalks up 69% rise in Q1 net profit to $120.8m

By Kalpana Rashiwala

[email protected] @KalpanaBT


UOL Group, which posted 69 per cent year-on-year improvement in first-quarter net earnings, said residential property demand and prices will continue to moderate on the back of the cumulative effect of the various cooling measures.

It noted that the Urban Redevelopment Authority's private home price index eased 1.3 per cent in Q1 2014 over the preceding quarter.

"Rentals of office space are expected to move upwards amidst rising market confidence. Rentals of retail space are expected to remain stable," the property and hotel group said in its results statement.

The $49.1 million or 69 per cent increase in UOL's net profit for Q1 ended March 31, 2014, to $120.8 million was due mainly to the sale of a residential site at Jalan Conlay, Kuala Lumpur, which netted a one-off attributable gain of $44.3 million.

Group revenue rose 65 per cent to $408.8 million, of which the KL land sale accounted for $218.5 million.

Revenue from hotel operations, bolstered by Parkroyal on Pickering which opened in January 2013, was up 8 per cent against Q1 2013 and contributed $107.2 million to group revenue in Q1 2014.

Revenue from property development rose 144 per cent to $247.9 million, of which $218.5 million was accounted for from the disposal of the Jalan Conlay site.

Revenue from property investments, which includes the revenue from Pan Pacific Serviced Suites Beach Road that opened in the second quarter of 2013, increased 16 per cent to $48.7 million.

Share of profit from associated companies was 10 per cent higher at $25.2 million - due mainly to United Industrial Corporation, which enjoyed higher contributions from Pan Pacific Singapore and the Archipelago residential project; and Marina Centre Holdings, which also benefited from the improved showing of Pan Pacific Singapore.

UOL's 555-unit River-bank@Fernvale condo project in Sengkang, which was launched on Valentine's Day this year, is 41 per cent sold, with the one and two-bedroom units fully taken up. The average price achieved is slightly in excess of $1,030 psf.

The group said it plans to launch later this year two Singapore private residential projects - Seventy St Patrick's and another development in Upper Paya Lebar. The group recently clinched a 99-year private condo site at Prince Charles Crescent at $820.65 per square foot per plot ratio, 14.5 per cent lower than what the next door site fetched two years ago.

UOL's earnings per share climbed to 15.67 cents in Q1 2014 from 9.31 cents in Q1 2013. Net asset value per share stood at $8.93 at end-March 2014, up from $8.77 at end-Dec 2013.

The counter closed eight cents lower at $6.48 yesterday. UOL released its results after the stock market closed.