http://www.straitstimes.com/archive/...sales-20150425

COMPANIES

UIC's profit rises 39% on higher property sales

Published on Apr 25, 2015 1:23 AM

By Chia Yan Min


HIGHER property sales and an increased share of earnings from its Singapore Land unit boosted first-quarter profits at United Industrial Corporation (UIC).

Net profit for the three months to March 31 surged 39 per cent to $60.8 million, while revenue rose 30 per cent to $193.2 million.

Property sales tripled from last year to $62.6 million due to progressive sales recognition for V on Shenton, Mon Jervois and Alex Residences.

Revenue from hotel operations increased slightly to $36.1 million from $35.5 million in the corresponding quarter last year, while gross rental income from investment property remained stable at $68.1 million.

Non-controlling interests fell 59 per cent to $8 million, due mainly to lower minorities' share of Singapore Land's net profit.

UIC took Singapore Land private last year.

It said yesterday that the office leasing market is expected to be steady despite more secondary space becoming available due to tenants relocating from older buildings.

However, "weak tourist arrivals, the supply of new retail space and hotel rooms, and slow retail sales will put pressure on retail rents and hotel room rates".

Residential sales will also remain slow in the light of property cooling measures, it added.

Earnings per share for the quarter was 4.4 cents, up from 3.2 cents in the same period last year, while net asset value per share was $4.14 as at March 31, up from $4.09 as at Dec 31 last year.

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