UOL’s annual profit down 3% at S$785.8 million

SINGAPORE – Developer UOL Group on Friday reported annual net profit fell 3 per cent to S$785.8 million, as rentals from leasing offices and shopping malls and income from operating hotels and serviced suites helped to cushion declines from sales of property developments.

Revenue for the year ended Dec 31 was down 8 per cent at S$1.06 billion, due mainly to the completion of various development projects including Double Bay Residences and Waterbank at Dakota, which were completed in 2012 and early 2013, respectively.

Property investment contributed the largest share of earnings before income tax, depreciation and amortisation (S$310.3 million), followed by property development (S$153.5 million), and hotel operations (S$124.8 million), UOL said.

UOL Chief Executive Gwee Lian Kheng said: “Our strategy to grow the investment assets have begun to bear fruit in the results. We will continue to grow recurring income stream from our existing asset portfolio and seek out suitable hospitality and commercial investments overseas.”

“With the privatisation of Pan Pacific Hotels Group, we expect its income will further enhance our group profit in the coming years. On the residential front, we will be more selective and niche in land acquisition in Singapore,” he said.

The UOL board has proposed a special dividend of 5 cents on top of the first and final dividend of 15 cents a share to commemorate the 50th anniversary of the group.