Property company UOL Group said its first quarter net profit fell 71 per cent to just over S$100 million.
This was due mainly to negative goodwill on acquisition of interests in an associated company in the first quarter of last year.
But the picture was more positive on the revenue end up 27 per cent to S$250 million due to the better performance of its property development, investments and hotel operations.
UOL said property development was the leading contributor to sales with two new projects launched in 2009 being fully sold.
For the first quarter, UOL said its revenue from property development rose 48 per cent on year to S$130.4 million.
Property investments grew four per cent to S$36.6 million and hotel operations rose 12 per cent to S$77.7 million.
The company also said revenue per available room improved across its hotels and management services also saw a 19 per cent jump in revenue to S$4.6 million.
Gwee Lian Kheng, CEO, UOL, said: “With Singapore’s economy projected to grow seven to nine per cent this year and the recent enthusiasm in land-bidding and home-buying activities, we hope to see sustained interests in the residential market.
“The strong double-digit growth in visitor arrivals should continue to drive up demand for hotel rooms in Singapore and hence benefit our hotels.”
UOL also said its latest residential project, Waterbank at Dakota, is now 99 per cent sold at an average price above S$1,100 per square foot.
Source : Channel NewsAsia – 12 May 2010