PROPERTY player UOL Group posted a 60 per cent fall in net profit to S$227.8 million for the six months ended Dec 31, 2024. This was mainly due to the absence of a one-time gain from the sale of Parkroyal on Kitchener Road in October 2023.
Otherwise, the company saw growth across its key segments that drove a 16 per cent rise in revenue to S$1.5 billion.
Its board proposed a first and final dividend of S$0.18 per share for FY2024, compared with a total dividend of S$0.20 per share last year that included a S$0.05 special dividend. The payment date for the FY2024 dividend will be announced later.
UOL’s H2 revenue from property development rose by S$140 million, or 26 per cent, due to higher progressive revenue recognition from the Pinetree Hill and Watten House projects.
Revenue from property investments rose 8 per cent, with better performance from its Singapore commercial properties and Pan Pacific Serviced Suites Kuala Lumpur. UOL also recorded new contributions from Parkroyal Serviced Suites Jakarta, which opened in January last year.
Revenue from hotel operations similarly increased 5 per cent, thanks to the opening of Pan Pacific Orchard in June 2023 and better performance at Pan Pacific Perth and Parkroyal Melbourne Airport after both underwent renovations in 2023.
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For the full year, UOL’s net profit was down 49 per cent to S$358.2 million. But excluding the impact of one-time gains, the company’s operating profit after tax and minority interests was up 13 per cent to S$314.2 million. This came as revenue rose 4 per cent to S$2.8 billion.
UOL’s net gearing ratio stood at 0.23, down slightly from 0.24 as at Dec 31, 2023.
Looking ahead, the company is “cautiously optimistic” amid ongoing uncertainty in the global economy, said chief executive Liam Wee Sin.
UOL will unveil the private launch of Upperhouse at Orchard Boulevard in mid-2025, followed by the Holland Drive development in the third quarter.
Liam believes that residential sales momentum will continue with Singapore’s growing economy and low unemployment rate. But the performance of new launches will depend on “micro-market supply-demand factors, locational attributes and well-connected transportation networks”, he said.
Separately, UOL expects the office sector to stay resilient, with Singapore’s position as a global hub and the limited supply of new offices.
The domestic hospitality sector is also “likely to remain stable, driven by the government’s long-term plan to boost business events and leisure activities”, the company added.
UOL ended Thursday at S$5.30, down S$0.12 or 2.2 per cent.
