SINGAPORE (April 28): United Industrial Corporation (UIC), the property development and investment company, posted $60 million in earnings for the first quarter ended March 31, relatively unchanged from a year ago.
This comes in spite of a 31% rise in 1Q revenue to $264.5 million from $201.3 million in the same quarter in the previous year.
The surge in revenue was mainly driven by an 81% increase in sales recognition from the sales of trading properties to $127.3 million on higher progressive revenue for the group’s residential projects, particularly from V on Shenton and Alex Residences.
Revenue from information technology operations and hotel operations grew 17% and 3% to $27.6 million and $37.3 million respectively as well, while gross rental income from investment properties remained stable at $69 million.
The higher topline was however largely offset by higher cost of sales, which grew 37% to $166.4 million from $121.2 million in the previous year due to a surge of cost of properties held for sales sold to $97 million, nearly doubling from $55.3 million in 1Q16.
A significantly higher $14.8 million in other losses was recorded as compared to a loss of $0.34 million in 1Q16, due to an Additional Buyer Stamp Duty payment on Mon Jervois in Feb 2017.
Nonetheless, profit before share of results of associated companies and joint ventures increased 2% to $70.5 million.
In its outlook, UIC says it expects the sturdy take-up rate of office and retail spaces to trim oversupply and ease pressure on rentals, while improving segments and an increased number of high bidders for residential land sale are expected to raise buying interest and confidence in the industry.
With increased new hotel room supply, the group believes the hotel sector will remain competitive.
Shares of UIC closed flat at $3.16 on Friday.
