Singapore Land together with its parent company United Industrial Corporation (UIC) witnessed declines in net earnings for Q2 2012, dragged down by lower profit from operations and lower fair value gains on investment properties.
A major office landlord, SingLand revealed that net profit dropped 85 percent year-on-year to S$46.5 million, while revenue fell 40 percent year-on-year to S$104.2 million, brought on from lower revenue from the Pan Pacific Singapore hotel which was closed for renovation.
Fair value gains of investment properties fell to S$5.6 million from S$247.6 million in Q2 last year.
SingLand’s net profit for 1H2012 fell to S$101.9 million or 72 percent year-on-year while revenue slipped four percent to S$299.7 million.
“The robust domestic consumption, healthy visitor arrivals and interest from international retailers will help the retail rental and hospitality markets to stay resilient. With high liquidity, low interest rates and the good leasing demand, the local private residential sales market is expected to remain stable,” said SingLand.
Meanwhile, UIC’s Q2 net profit declined 46 percent to S$82.2 million while fair value gain on investment dropped to S$51.95 million from S$147.8 million last year. The group’s earnings per share (EPS) for Q2 also fell six cents from 11.1 cents in Q2 2011.