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UIC net profit surges 65% in Q2

SINGAPORE – Property giant United Industrial Corp (UIC) on Friday reported its second-quarter net profit rose 65 per cent to S$135.3 million, mainly due to contribution from its hotel sector and associated companies.

SINGAPORE – Property giant United Industrial Corp (UIC) on Friday reported its second-quarter net profit rose 65 per cent to S$135.3 million, mainly due to contribution from its hotel sector and associated companies.

Group revenue rose 9 per cent to S$151.9 million, because of higher turnover from hotel operations, partially offset by lower sales of trading properties.

Revenue from hotel operations increased by 280 per cent following the reopening of Pan Pacific Singapore hotel after closure for renovation from April to August 2012, but sales of trading properties fell 21 per cent due mainly to lower contribution from The Trizon residential project.

“The hotel industry is facing challenges from slower visitor growth, sizeable new room supply and labour crunch,” the company said. “Although underlying demand for private condominiums remains firm, competition and strong supply coupled with the effects of the government’s cooling measures may slow investment demand. Growing of land bank remains challenging in the face of intensive competition for choice sites,” it added.

UIC’s Singapore Land unit said its net profit for the same period rose 217 per cent to S$147.2 million, boosted by a rise in fair value gains, while revenue increased 14 per cent to S$118.8 million.

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