SINGAPORE (Nov 2): Property group UIC reported 3Q earnings from operations for the quarter recorded $59.3 million, a decrease of 36% over the same period last year, in line with lower sales.
Revenue for 3Q came in at $151.9 million, which was lower than the same period last year by 63% mainly due to lower sales recognition from trading properties.
Revenue recognised from the sales of trading properties at $11.7 million was lower by 96% as the group's development projects were completed and substantially sold in 2017.
Revenue from IT operations increased by 33% to $27.8 million from a year ago while revenue from the group's hotel operations and investment properties increased to $40.2 million and $71.5 million respectively.
Selling and distribution costs decreased by 67% to $4.7 million in line with lower sales from residential projects.
In its outlook, UIC says office rental is expected to continue to be well-supported amid positive business sentiments and modest new supply.
However, retail rental will continue to be under pressure and remain soft in the face of challenges from e-commerce and tight labour market conditions while residential market will likely remain subdued in the near term.
Demand in the hotel sector in Singapore is expected to be robust as the new supply is supported by improved tourist arrivals.
Year to date, shares in UIC are down 10.5% to close at $2.98 on Friday.
