UOL's Q2 profit weighed down by lower fair-value gains

UOL Group said on Wednesday its net profit for the second quarter ended June 30, 2015, slid 28 per cent from a year ago to S$152.5 million, mainly due to lower fair-value gains on the group's investment properties, including those of associated companies.

The fair-value gains totalled S$53.3 million during the quarter - 56 per cent lower than in the year-ago period.

This offset stronger contribution from development projects Katong Regency, Riverbank@Fernvale and Seventy Saint Patrick's, which boosted core earnings.

Group revenue rose 60 per cent to S$342.2 million in Q2 2015 as revenue from property development more than quadrupled to S$162.3 million from S$36.6 million in the year-ago period, due mainly to progressive recognition of revenue from residential sales.

UOL Group chief executive Gwee Lian Kheng said: "Our core earnings from property development remained strong in the second quarter despite sluggishness in the residential market. The encouraging sales from Botanique at Bartley have shown that niche development can still attract buyers."

The group's 797-unit Botanique at Bartley, which was launched in April, has seen a take-up of 60 per cent.