UOL Group posted second quarter net profit increased 48 percent on-year to S$195.38 million on higher fair value gains on investment properties.
Revenue for the quarter ended 30 June fell 20 percent on-year to S$512.30 million on lower revenue recognition from development projects, the developer said in a filing to SGX.
Fair value gains on investment properties jumped 182 percent on-year to S$181.86 million for the quarter, UOL said. Net profit before fair value and other gains was down 1 percent on-year at S$91.67 million, the filing said.
Revenue from property development fell 48 percent on-year to S$145.3 million, UOL said.
Property investment revenue increased 3 percent on-year to S$137.8 million for the quarter, mainly on contributions from the UIC Building and new contributions from the 72 Christie Street property in Sydney, Australia, UOL said.
Hotel ownership and operations posted a 3 percent on-year fall in revenue to S$151.3 million, mainly on lower occupancy and room rates at Marina Mandarin and ParkRoyal Darling Harbour and amid ongoing refurbishment at ParkRoyal on Kitchener Road.
For the first half, UOL reported net profit rose 29 percent on-year to S$267.74 million on revenue of S$1.25 billion, down 4 percent on-year.
UOL’s outlook for the Singapore residential property market was relatively sanguine, forecasting prices for new private homes to remain relatively stable despite an economic cool down.
“In the first half of 2019, the take-up for new projects was 6 percent higher than the preceding year notwithstanding the cooling measures introduced on 6 July 2018. We see resilience in the market and potentially further upside for selected projects with strong location and product attributes,” Liam Wee Sin, UOL CEO, said in the statement.
For the Singapore office market, UOL said it expected steady demand and tighter vacancy to support rents, but that retail rents would likely remain under pressure.
“Whilst global economic concerns may affect the near-term outlook, UOL expects tourist arrivals to Asia Pacific to grow steadily in the medium term, benefiting the group’s hotels in the region,” the filing said.
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