Published February 13, 2010

UIC, SingLand incur full-year net losses

UIC reports loss of $142.8m for the year while its unit posts loss of $265.96m



UNITED Industrial Corp (UIC) and its unit Singapore Land (SingLand) both posted net losses for the full year ended Dec 31, hit by fair-value losses on investment properties.

UIC incurred a net loss of $142.8 million for the year - almost double the $74.6 million it lost a year ago.

This was despite revenue rising 13 per cent year-on-year to $1.01 billion, from higher rental income and more progressive recognition of sales of trading properties. Net profit from operations grew 28 per cent to $240.8 million.

A $658.5 million fair-value loss on investment properties ate into UIC's bottom line for the year. This far exceeds the $397 million seen in the previous year.

Most properties involved in a valuation exercise dated Dec 31 experienced a drop in value. Tampines Plaza was one of the worst hit in percentage terms - its value fell to $73 million, down 7 per cent from the last valuation at June 30.

The value of UIC Group's interest in SGX Centre 1 & 2 also slid by 6 per cent to $410 million. UIC Building, Singapore Land Tower, Clifford Centre, The Gateway and Abacus Plaza also saw their values dip. Marina Bayfront, Marina Square Retail Mall and West Mall stood out as their values rose in the exercise. Marina Bayfront's increased by 6.7 per cent to $64 million.

UIC is proposing a first and final dividend of three cents per ordinary share, payable on May 24.

Office landlord SingLand reported a net loss of $265.96 million for the year, which widened from a loss of $117.4 million in the previous year.

The company had actually boosted revenue by 12 per cent year-on-year to $397.5 million, helped by sales of a residential project The Trizon and higher rental income. Operations also generated 28 per cent more net profit, totalling $203.3 million.

Similarly, fair-value losses on investment properties dragged earnings down. This was $608.6 million for the year, almost double the $319.7 million a year ago.

SingLand is proposing a first and final dividend of 20 cents per ordinary share, payable on May 19.

For the next 12 months, both UIC and SingLand expect the office leasing market to be competitive with the onset of a large supply of new office space. 'The expected economic recovery will be supportive of retail rents,' they said.

UIC gained two cents to close at $1.90 yesterday, and SingLand rose 15 cents to end at $6.30.