UOL H2 profit rises 21% to S$276.2 million; special dividend proposed
This brings the total payout for FY2025 to S$0.25 a share
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[SINGAPORE] Property player UOL on Thursday (Feb 26) posted a 21 per cent rise in net profit to S$276.2 million for the six months ended Dec 31, 2025, from S$227.8 million for the corresponding period a year earlier.
This comes despite an undoubtedly uncertain and volatile year, weighed down by trade tension and geopolitical conflict, said UOL chief executive officer Liam Wee Sin at an earnings briefing the same day.
Nonetheless, Liam said, the group has delivered “sharp execution” on all fronts, with strong recurring income from its residential segment; “very high” positive reversion for its commercial assets, especially in Singapore; and a stronger hospitality portfolio.
This brought revenue for H2 FY2025 to S$1.68 billion, 11 per cent higher than S$1.52 billion in the year-ago period.
Earnings per share for H2 FY2025 stood at S$0.3268, compared with S$0.2696 for the same period a year earlier.
The board proposed a first and final dividend of S$0.18 a share and a special dividend of S$0.07 a share for FY2025. This brings the total dividend for the year to S$0.25 a share, up from the total dividend of S$0.18 a share for FY2024.
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The payment date for the latest dividends will be announced later, UOL said.
Revenue from property development rose by 16 per cent or S$105.4 million in H2 FY2025.
This was due mainly to “new revenue recognition from Upperhouse at Orchard Boulevard, as well as higher progressive revenue recognition from Watten House, Meyer Blue and Pinetree Hill”, UOL said.
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It added that the gains were “offset partially by the absence of contribution” from The Watergardens at Canberra, which obtained its temporary occupation permit in late 2024.
Revenue from property investments rose 15 per cent year on year to S$325.6 million. This was mainly due to new contributions from the group’s interest in 388 George Street in Sydney and Varley Park in Brighton, as well as “better performance” from Singapore Land Tower and West Mall following the completion of enhancement works.
Revenue from hotel operations remained stable at S$440.7 million, compared with S$440.9 million in the corresponding period a year earlier.
Full-year performance
For the full year, UOL’s net profit was up 34 per cent at S$481.7 million from S$358.2 million for FY2024. Revenue grew 16 per cent year on year to S$3.2 billion from S$2.8 billion.
The residential segment, in particular, posted a record high gross development value of S$5.1 billion, around four times of 2024’s S$1.3 billion.
Most projects were substantially sold, and the strong sales will support earnings visibility over the next few years, said Yvonne Tan, UOL’s chief corporate and development officer.
She noted that while sales momentum was strong in the year, with developers’ sales hitting a four-year high and new supply nearly doubling, prices growth was moderate at 3.3 per cent – the slowest pace since 2020.
“This reflects underlying demand resilience supported by policy stability and calibrated pricing from developers,” she added.
The group’s performance was also shaped by earlier land acquisition decisions made amid cautious sentiment in 2024, Tan said. This disciplined approach enabled UOL to secure various sites “at a good price at a good time”, before being “launched into a supportive market in 2025”.
At the same time, 2025 marked the start of UOL’s new replenishment cycle, with the acquisition of Thomson View condominium and a state land site at Dorset Road state. Most recently in January, UOL and CapitaLand acquired a massive mixed-use site in Hougang Central for S$1.5 billion.
“This gave us a timely and quality pipeline,” said Liam.
Meanwhile, Liam said the planning of Marina Square’s partial redevelopment was at its final stage, pending written permission from authorities. The final product will be a “hyper-mixed development” comprising homes, serviced apartments, hospitality and office space – something with “great transformational contribution that can appeal to the city”.
He declined to disclose detailed asset-mix figures.
When asked about bringing in partners given the project’s complexity and UOL’s preference for joint ventures in its residential projects, Liam said the Marina Square project would be kept within UOL.
UOL chief financial officer Eric Ng added that funding of the project, as well as the group’s other residential developments, is unlikely to be an issue for the group, thanks to its strong balance sheet and cash position.
As at Dec 31, 2025, the group’s net gearing stood at 0.2, from 0.23 a year earlier. Interest cover was eight times, with an average debt maturity of 2.3 years and an average borrowing cost of about 3.3 per cent. It also has unutilised credit facilities of S$3.1 billion.
“We are undergeared, so by right, we should borrow more,” Ng quipped.
Looking ahead, Liam believes the year ahead will continue to be uncertain amid trade and geopolitical tensions, as well as an increasingly complex and challenging operating environment.
Even so, there will be opportunities in the market, and the group will be “busy combing where we can deploy (capital)”, said Liam.
The office sector, for instance, offers an “attractive proposition”, especially with tight supply in the Central Business District.
The domestic retail and hospitality sectors are also expected to remain stable. UOL noted that while tourism demand remains supportive, the operating environment for hotels is “challenging” due to manpower constraints and elevated operating costs.
Shares of UOL closed down 6.1 per cent or S$0.69 to S$10.68 on Thursday, before the news.
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