UOL and Sim Lian post weaker property development results

Property developer UOL Group has announced that revenue was 59 percent down at S$297.7 million in the first quarter ended 31 March 2012, attributed to a 75 percent revenue drop in its property development segment to S$153.2 million.

Net attributable profit for the quarter also fell 63 percent to S$84 million, from S$230 million over the same period last year. This was mainly due to a 52 percent fall in share of profits from associated companies after the completion of Nassim Park Residences (pictured) in Q1 last year.

“Our first quarter results reflected a slowdown in new launches since last year and the completion of several projects,” said Gwee Lian Kheng, Group Chief Executive of UOL.

Meanwhile, revenue from hotel ownership and operations saw a 22 percent increase to S$96.8 million while revenue from property investments climbed seven percent to S$41.9 million. The company’s expenses also inched up two percent to S$47 million due to a 15 percent increase in administrative expenses to S$16.3 million.

UOL’s commercial properties continued to be well received, with all its major retail and office buildings recording an occupancy rate of 95 percent.

Looking ahead, Gwee said the company expects demand from new homes in the mass market segment to remain stable, underpinned by low interest rates and high liquidity. It will also replenish its Singapore landbank and remain selective when making overseas acquisitions.

Meanwhile, Sim Lian Group, another local developer, reported a 56 percent drop in profit before income tax to S$29.4 million in the third quarter of FY2012. This was mainly due to a 52 percent decline in revenue, underpinned by lower contributions from its property development division, particularly from the Parc Lumiere project.

External contruction projects contributed S$45.6 million to the company’s revenue, up 94 percent from last year’s S$23.5 million.

“The higher revenue contribution was mainly due to the higher percentage of completion recorded in 3QFY2012,” it said in a statement.