Property giant United Industrial Corp (UIC) on Friday reported annual net profit doubled even as revenue fell, helped by a surge in fair value gains on the group’s investment properties.
For the year ended Dec 31, UIC earned S$391.6 million, including a S$247.3 million revaluation gain, while revenue slumped 12 per cent to S$711.5 million. Turnover fell mainly due to lower revenue from hotel operations, rental income and sales of trading properties.
UIC said: “The outlook of the office market will remain competitive in view of significant new offices in the pipeline and the slow economic recovery. Despite expected healthy tourist arrivals and high employment, the retail and hospitality sectors will be affected by prevailing manpower shortages and rising business costs.”
“The cooling measures introduced by the Government in January 2013 to curb rising residential property prices will impact transactions both in volume and pricing. The continuing low interest rates and high employment may serve to moderate this impact,” it added
UIC’s SingLand unit said net profit rose 15 per cent to S$407.1 million, boosted by a 36 per cent rise in fair value gains while revenue fell 6 per cent to S$580.6 million. The decrease in turnover was due to the closure of Pan Pacific Singapore hotel for refurbishment from April to August 2012, which resulted in a revenue drop of $55.8 million, it said.
Source : Today – 8 Feb 2013