The firm attributed the rise to higher attributable fair value and the gains of $165.1 million compared with the earlier year’s $85.3 million.
The UOL Group had its full year ending 31 December 2019 net profit go up 14% to $478.8 million from the earlier year’s $418.3 million.
But, revenue has dropped 5% to $2.3 billion on lesser progressive revenue recognition from 3 development projects – Botanique at Bartley, The Clement Canopy and Principal Garden.
The decrease in revenue was partly offset by a rise in revenue recognition from development projects such as Avenue South Residence, Amber45, The Tre Ver and Park Eleven in Shanghai, and higher sales from the technology business of United Industrial Corporation Limited (UIC).
Income from property investments rose 2% to $551.7 million. Hotel ownership and operations, on the other hand, dropped 4% to $653.7 million because “operations were impacted by the closing of Pan Pacific Orchard for redevelopment and lesser contributions from PARKROYAL Darling Harbour, PARKROYAL COLLECTION Marina Bay (the previous Marina Mandarin Singapore), and Pan Pacific Suzhou which was sold in end of 2019, as well as refurbishment improvements at PARKROYAL on Kitchener Road”, commented the property developer in a release.
Revenue from technology and management services climbed 25% to $175.6 million. Dividend income also increased 15% to $55.2 million during the same period.
UOL noticed buying sentiment for new homes by Singaporeans was subdued by the COVID-19 pandemic, while the hospitality industry was adversely impacted. Thus their new project Clavon was scheduled to release at a very competitive rate to counteract the current situation, similar to what Penrose was doing.
“To that aspect, we recognise the Government’s comprehensive Budget that take into consideration the many segments of the society and businesses, and safeguards for employment,” said Liam Wee Sin, Group Chief Executive at UOL.
As a matter of fact, UOL group intends to transfer the property tax rebates to its commercial tenants, which were badly affected from lower footfall and spending at the malls.
“The construction sector is also managing its uncertainties in the supply chain and labour shortage. The externalities have visibly deteriorated and this may in due course justify a review on the protraction of the ABSD deadline,” said Mr Liam.
“Currently, we hope that the COVID-19 pandemic can be controlled soon so that businesses can return to normal operations.”
UOL directors proposed a first and final dividend of 17.5 cents per share, unchanged from 2018.
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