PROPERTY and hospitality company UOL Group : U14 0% on Monday (Feb 27) reported a net profit of S$120.8 million for the second half of FY2022 ended December, some 44 per cent lower than its earnings of S$216.1 million in the corresponding period in FY2021. 

Despite the stumble in H2, the group’s earnings for FY2022 came in at S$491.9 million, up 60 per cent from S$307.4 million in FY2021. 

It attributed the improved performance to a strong showing from its property development and hotel operations. Fair-value gains of S$268.2 million also bolstered the bottom line, UOL said. 

The board of directors has declared a first and final cash dividend of S$0.15 per ordinary share, as well as a special cash dividend of S$0.03 per ordinary share. The record date will be announced at a later time, the company said.

Revenue for H2 2022 rose 21 per cent to S$1.7 billion from S$1.4 billion, due mainly to higher revenue from property development and hotel operations. 

In H2, revenue from property development was up 11 per cent to S$977.4 million, due primarily to higher progressive recognition of revenue from Clavon, The Watergardens at Canberra and AMO Residence. 

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Revenue from hotel ownership and operations was up 123 per cent to S$347.8 million, due chiefly to contributions from the opening of new or refurbished hotels, including Parkroyal Collection Marina Bay in May 2021, Pan Pacific London in September 2021, and Parkroyal Collection Kuala Lumpur in June 2022. 

Hotels also benefited from border reopenings and the resumption of economic and social activities in their respective countries, UOL said. 

The group said that expenses have also generally increased with the resumption of business activities and the opening of new and refurbished hotel properties. 

In contrast, there were more cost-containment activities in FY2021, when businesses were still affected by the Covid-19 pandemic.

Operating costs have also generally increased due to inflationary factors, the group said. 

UOL said that the global outlook remains challenging due to the ongoing Russian-Ukraine conflict, persistent inflationary pressures, and slowdown in a number of major economies. 

“We are mindful of the external uncertainties given the ongoing geopolitical tensions, persistent inflationary pressures, recession risks in some developed economies, and rising business costs,” said UOL’s chief executive Liam Wee Sin.

“We believe UOL’s residential inventory, which has strong locational attributes, will continue to draw keen interest from homebuyers and investors. Our land replenishment includes two freehold land parcels which are rare and sought after.”

With the opening of various economies, including China’s easing of travel restrictions in January, UOL also said that the retail sector should benefit from the rebound of the tourism industry and higher shopper footfall. 

“Coupled with (a) low supply pipeline in retail space, rents are expected to remain supported. The hospitality business of the group should benefit from the continued recovery of the tourism industry,” said UOL. 

Shares of UOL fell 0.4 per cent or S$0.03 to close at S$6.76 on Monday, prior to the announcement.