UOL net profit up 14% to $478.8m in 2019

Victor KangMarch 2, 2020

avenue south residences condo new launch

The company attributed the hike to higher attributable fair value and other gains of $165.1 million compared with the previous year’s $85.3 million. Photo: Avenue South Residence

UOL Group saw its net profit for the full year ended 31 December 2019 increase 14% to $478.8 million from $418.3 million in 2018.

The company attributed the hike to higher attributable fair value and other gains of $165.1 million compared with the previous year’s $85.3 million.

Revenue, however, declined 5% to $2.3 billion on lower progressive revenue recognition from three development projects – namely, The Clement Canopy, Botanique at Bartley and Principal Garden.

The drop in revenue was partially offset by increased revenue recognition from development projects such as Amber45, Avenue South Residence, The Tre Ver and Park Eleven in Shanghai as well as higher sales from United Industrial Corporation Limited’s (UIC) technology business.

Revenue from property investments climbed 2% to $551.7 million. Hotel ownership and operations, on the other hand, declined 4% to $653.7 million as “operations were affected by the closure of Pan Pacific Orchard for redevelopment and lower contributions from PARKROYAL COLLECTION Marina Bay (the former Marina Mandarin Singapore), PARKROYAL Darling Harbour and Pan Pacific Suzhou which was sold in December 2019, as well as refurbishment works at PARKROYAL on Kitchener Road”, revealed the property developer in a release.

Revenue from management services and technology jumped 25% to $175.6 million. Dividend income also grew 15% to $55.2 million during the period under review.

UOL noted that buying sentiment for new homes in Singapore was dampened by the COVID-19 outbreak, while the hospitality industry was adversely affected.

“To that end, we appreciate the Government’s comprehensive Budget that considers various segments of the society and businesses, and safeguards for employment,” said UOL Group Chief Executive Liam Wee Sin.

In fact, the group intends to pass on the property tax rebates to its retail tenants, which was affected by lower footfall and spending.

“The construction industry is also dealing with labour shortage and uncertainties in the supply chain. The externalities have clearly deteriorated and this may eventually warrant a review on the extension of ABSD deadline,” noted Liam.

“For now, it is our hope that the COVID-19 outbreak can be contained as soon as possible so that businesses can return to normalcy.”

UOL directors proposed a first and final dividend of 17.5 cents per share, unchanged from 2018.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

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