UIC Q3 net profit down 36% on lower sales

PROPERTY group United Industrial Corp (UIC) on Friday posted a net profit of S$59.3 million in the third quarter, a fall of 36 per cent from the same period a year earlier, owing to lower sales recognition from trading properties.

Revenue in the three months ended Sept 30 plunged 63 per cent to S$151.9 million.

Since UIC's development projects were completed and substantially sold in 2017, revenue from the sales of trading properties was 96 per cent lower at S$11.7 million.

Revenue from property investments rose 4 per cent to S$71.5 million. Revenue from hotel operations rose 7.5 per cent to S$40.2 million.

Revenue from information technology operations rose 33 per cent to S$27.8 million. Selling and distribution costs fell 67 per cent to S$4.7 million, in line with lower sales from residential projects.

UIC also reported a loss of S$234,000 in the third quarter from Additional Buyer's Stamp Duty costs.

UIC said in its results filing that office rental is expected to stay well-supported amid positive business sentiment and modest new supply, though retail rental will remain soft.

The residential market will likely remain "subdued in the near term" while demand in the hotel sector is expected to be "robust as the new supply is supported by improved tourist arrivals", it added.

Earnings per share was 4.1 Singapore cents, down from a restated 6.5 cents in the third quarter last year. Net asset value per share was S$4.68 as at Sept 30, up from S$4.56 as at Dec 31 last year.

UIC shares jumped 4.56 per cent or 13 Singapore cents to S$2.98 on Friday before the results were announced after close of trading.