UOL slips into the red with Q2 loss of S$20m

Property developer UOL has slipped into the red in the second quarter.

The firm made a loss of S$20 million in the three months to June, compared to a profit of S$145 million in the same period last year.

The loss was due to lower income from its hotel operations and fair value losses recognised for UOL’s investments in United Industrial Corp and Marina Centre Holdings in the second quarter.

Revenue for the period rose 2 per cent on year to S$213.7 million, with the progressive recognition of revenue from the sale of UOL’s development properties.

Revenue from property investments also improved due to higher average rental rates achieved for the firm’s investment properties.

UOL said that with substantial new supply of office space in the pipeline in Singapore, rentals are likely to face further downward pressure, while retail rentals may be affected by new mall completions.

The firm added that the outbreak of the H1N1 flu virus and the global economic slowdown will continue to affect the hospitality industry in Singapore and the Asia Pacific region.

Source : Channel NewsAsia – 12 Aug 2009

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