SINGAPORE (Feb 24): Property developer UOL Group posts earnings of $287.0 million for the full year ended Dec 31, a decline of 27% from $391.4 million a year ago.
This was mainly due to attributable net fair value and other losses of $37.2 million in FY2016, compared with fair value and other gains of $41.0 million a year ago.
Full year revenue grew 13% to $1.44 billion, from $1.28 billion a year ago.
UOL reports higher contributions from all segments dividend income, which fell 29% to $30.2 million in the year due to the absence of the UOB special dividend.
Revenue from property development rose 27% to $733.9 million with recognition from Riverbank@Fernvale, Botanique at Bartley and Principal Garden.
Revenue from hotel operations increased by 2% to $429.6 million on the back of improved performance at Pan Pacific Tianjin in China, as well as at all its Australian hotels.
Revenue from property investments increased 3% to $225.0 million due mainly to the addition of 110 High Holborn in London, which was acquired in June 2016.
Group expenses fell 7% to $252.6 million, from $272.4 million a year ago.
Excluding fair value and other losses, share of profit from associated companies and joint venture companies fell 13% to $136.2 million after the completion of Archipelago and Thomson Three in Sept 2015 and May 2016, respectively.
In addition, UOL incurred an impairment charge of $26.7 million for a hotel under development in London, due mainly to increases in development cost estimates in 2016.
This was partially offset by a write-back of an impairment charge of $2.7 million for Pan Pacific Tianjin.
Cash and cash equivalents stood at $301.3 million as at Dec 31, 2016.
UOL has proposed a first and final dividend of 15 cents per ordinary share.
“We have continued to build our recurring income with new acquisitions overseas. This has cushioned the decline in contributions from property development in Singapore where the market remains challenging,” says Laim Wee Sin, UOL deputy group chief executive officer.
Looking ahead, Liam says UOL is looking to replenish its landbank in niche locations. He adds that the group believes there is still demand for projects with good locational and product attributes.
UOL closed 6 cents lower at $6.65 on Friday.
