Housing sales help boost UOL profits by 44%

(Abstract from Straits Times 16th Nov, 2009)

UNITED Overseas Land (UOL) reported that profits for the third quarter ended Sept 30 rose 44 per cent to $105.6 million due to the strong take-up for new residential launches - Meadows@Peirce and Double Bay Residences.

These two projects have sold a combined 937 units to date, the group said last week.

The bottom line was helped by a higher contribution from associated companies, including United Industrial Corporation in which UOL has raised its stake to 32 per cent.

Revenue jumped 21 per cent to $323.9 million with revenue being progressively recognised

from development properties. In addition to Meadows@Peirce and Double Bay Residences, other properties included Duchess Residences, Southbank and The Regency at Tiong Bahru.

Revenue from property development contributed about two-thirds of total revenue. Other sources of revenue included hotel operations and property investments.

UOL group chief executive Gwee Lian Kheng said: 'We are pleased with our third-quarter results. Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs. Moving forward, we can also expect a more stable growth in the Singapore residential market with the reinstatement of the confirmed list of Government Land Sales Programme.'

He added: 'In spite of the challenging office and retail markets in Singapore, we managed to maintain higher occupancy and rental rates for most of our investment properties.

'As the economy recovers, the worst may be over in general for the hospitality industry and we are hopeful of seeing an improvement in the medium term.'

Earnings per share for the quarter rose from 9.24 cents last year to 13.32 cents.

Net tangible asset per share rose to $5.11 as of Sept 30, up from $4.22 as of Dec 31, while gearing improved to 0.39.

UOL shares ended unchanged at $3.29 last Friday, with one million shares changing hands.



UOL's revenue rose 21 per cent, helped by strong take-up for new residential launches such as Meadows@Peirce (above) and Double Bay Residences. -- ST FILE PHOTO