UIC Q3 earnings rise 37% to S$59.7m

Singapore

UNITED Industrial Corporation (UIC) has posted a 37 per cent year-on-year increase in third- quarter net profit to S$59.69 million, on the back of a 17 per cent rise in revenue to S$178.38 million.

Another factor that boosted the bottomline was a near doubling in share of profit of joint ventures to S$9 million from S$4.82 million previously - thanks to higher contributions from the Archipelago and Thomson Three projects. A further reason for the higher net profit was UIC's increased interest in Singapore Land to 99.5 per cent following its voluntary cash offer.

Earnings per share rose to 4.3 Singapore cents in Q3 FY2014 from 3.1 Singapore cents in Q3 FY2013. Net asset value per share rose to S$3.99 at end-September 2014 from S$3.61 at end-December 2013.

UIC said its higher third-quarter revenue was due mainly to higher trading property sales and higher revenue from hotel operations.

Sales of trading properties climbed 66 per cent to S$52.5 million with progressive sales recognition on percentage of completion basis for V on Shenton, Alex Residences and Mon Jervois, partly offset by absence of sales from The Trizon, which was fully sold in Q1 2014. Revenue from hotel operations expanded 13 per cent to S$38.6 million with higher room and occupancy rates, and higher F&B revenue at the Pan Pacific Singapore. The hotel re-opened in September 2012 after a major revamp.

Gross rental income from investment properties edged up one per cent to S$68.5 million.

For the first nine months ended Sept 30, 2014, net earnings increased 26 per cent to S$274.87 million while revenue climbed 9 per cent to S$494.18 million.

A breakdown of net earnings showed that net profit from operations improved 29 per cent to S$157.60 million. Fair value gains on investment properties held by subsidiary and associated companies also rose 21 per cent to S$117.27 million.

Giving its outlook on the property market, UIC noted that prime office rentals in Singapore are expected to remain buoyant as the island "continues to be a top city of choice for business start-ups and regional head office operations". Retail rentals will remain steady as new retail brands and up-market food and beverage chains pick Singapore to extend their reach in the South-east Asian market.

UIC ended a cent lower at S$3.34 on Friday. The group released its results after the market closed.