UOL reported Friday its first quarter net profit fell 5 percent on-year to S$72.36 million, but property development revenue grew.
Excluding an accounting reversal of S$31.9 million related to UIC consolidation, net profit would have increased 27 percent to S$104.3 million, UOL said.
Revenue for the quarter ended 31 March rose 12 percent on-year to S$741.21 million mainly on recognition of property development revenue from sales at Park Eleven, Shanghai, UOL said in a filing to SGX.
“We are pleased with the strong operating results for the first quarter of 2019 and are particularly encouraged by the good sales momentum in the last two months for The Tre Ver, which is now over 70 percent sold,” UOL CEO Liam Wee Sin said in the statement. “We expect keen interest for Avenue South Residence which capitalises on the Greater Southern Waterfront growth story.”
Property development revenue rose 24 percent on-year to S$390.87 million, UOL said.
The Park Eleven revenue was partly offset by lower revenue from the Principal Garden, The Clement Canopy and Botanique at Bartley, which have obtained their TOP, or temporary occupation permit, the filing said.
Property investment revenue increased 4 percent on-year to S$139.25 million on higher revenue from the UIC Building and new contributions from 72 Christie Street in Sydney, which was acquired in December 2018, UOL said.
Hotel ownership and operations revenue fell 6 percent on-year to S$163.42 million mainly on the closure of the Pan Pacific Orchard for redevelopment and lower revenue from the Australian hotels, UOL said.
Management services and technologies rose 16 percent on-year to S$47.67 million, UOL said.
Finance income for the quarter jumped 115 percent on-year to S$4.32 million, mainly on exchange gains on borrowings in some foreign currencies and higher interest income from a loan to joint venture company, Secure Venture Development (No.1), UOL said.
Finance costs jumped 38 percent on-year to S$28.61 million mainly on higher borrowings for the development site at Silat Avenue and the acquisition of the 72 Christie Street property, the developer said.
Other operating costs jumped 160 percent on-year to S$104.7 million, it said.
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