UOL Group net profit surges but it warns of disconnect between land cost and selling prices

uol-group-net-profit-surges-but-it-warns-of-disconnect-between-land-cost

SINGAPORE – UOL Group’s 2nd quarter net revenue rose 59 per cent to $109.4 million, enhanced by greater acknowledgment of revenue from apartment job Principal Garden.

Higher contributions from associated business and reasonable value gains on financial investment homes also lifted the bottom line, the company stated on Friday.

Earnings climbed by 10 percent year-on-year to $399.1 million, with residential or commercial property development accounting for 55 per cent of the turnover throughout the quarter.

UOL stated apart from Principal Garden, other property jobs which contributed to revenue included Botanique at Bartley and Riverbank@Fernvale.

Amid aggressive land quotes and rising optimism in the home market, UOL warned of a possible disconnect in between bullish land prices and selling prices.

” On the property front, our issue is a possible ‘detach’ in between the recent land tender costs and possible end-sale rates.

” Transaction volume in the residential sector has actually increased gradually but a sustainable recovery in end-sale costs will depend upon the characteristics of economy, supply-demand and the rental market,” noted UOL deputy group chief executive Liam Wee Sin.

The firm’s hospitality company including management services was primarily flat with the topline at $105.6 million versus $106.2 million in the previous corresponding duration.

Mr Liam added: “Our hospitality and financial investment services have actually carried out creditably in spite of difficult conditions. The current acquisition of a hotel in Melbourne, which is branded as Pan Pacific Melbourne will further reinforce our presence in Australia and our recurring earnings.”

Quarterly earnings per share rose to 13.59 cents, up from 8.64 cents a year previously. Net possession value per share improved to $10.27 as at June 30, from $10.10 at the end of Dec in 2015.

Net revenue for the first half rose by 30 percent year-on-year to $189.7 million as turnover increased by 8 percent to $749.8 million.

UOL shares closed 14 cents higher on Friday to $8.06 before the outcomes were announced.

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