Mainly due to higher revenue recognition from its Singapore condominium project, Principal Garden, UOL saw its net profit increase from S$68.8 million in Q2 2016 to S$109.4 million in the second quarter of 2017. (Image: UOL Group Limited)
Despite a 59 percent increase in net profit in Q2 2017, UOL Group expressed concern on a possible “disconnect” between recent residential land tender prices and achievable end sales.
“Transaction volume in the residential sector has risen steadily but a sustainable recovery in end-sale prices will depend on the dynamics of economy, supply-demand and the rental market”, said Liam Wee Sin, deputy group chief executive officer of UOL.
UOL saw its net profit soar from S$68.8 million in Q2 2016 to S$109.4 million in the second quarter of 2017, mainly due to higher revenue recognition from Singapore condominium project, Principal Garden, higher share of profit from associated companies as well as fair value gains on investment properties.
Revenue climbed 10 percent to S$399.1 million from S$363.55 million previously. Its property development segment, which accounted for 55 percent of group revenue, registered a 19 percent hike to S$221.2 million. Aside from Principal Garden, other projects that contributed to group revenue included Riverbank@Fernvale and Botanique at Bartley.
For the six months ended 30 June, net profit jumped 30 percent to S$189.7 million, while revenue rose eight percent to S$749.8 million.
Liam revealed that its hospitality and investment businesses are expected to performed well despite challenging economic conditions.
“The recent acquisition of a hotel in Melbourne, which is branded as Pan Pacific Melbourne will further strengthen our presence in Australia and our recurring income,” he said, while noting that the retail sector remains the “most challenging due to the increasing pace and magnitude of disruption by e-commerce and other new platforms”.
This article was edited by Denise Djong.
