The UOL Group experienced its net profit for the full year ending 31 December 2019 jump 14% to $478.8 million from the earlier $418.3 million in 2018.
The firm attributed the spike to higher fair attributable value and other benefits of $165.1 million as compared to the $85.3 million in the previous year.
Gross revenue, however, dipped 5% to $2.3 billion on lesser progressive revenue recognition from 3 development projects – namely, The Clement Canopy, which is near to One North Eden condo, Botanique at Bartley, which is near to Penrose condo, and Principal Garden.
The decline in revenue was proportionally offset by the rise in revenue recognition from residential projects such as Avenue South Residence, Amber45, The Tre Ver and Park Eleven in China, Shanghai, and better sales from United Industrial Corporation Limited’s (UIC) technology enterprise.
Revenue from real estate investments inched up 2% to $551.7 million. Hotel operations and ownership, on the other hand, fell 4% to $653.7 million as “operations were impacted by the shutting down of Pan Pacific Orchard for redevelopment and lesser contributions from the PARKROYAL COLLECTION Marina Bay (the previous Marina Mandarin Singapore), PARKROYAL Darling Harbour and Pan Pacific Suzhou which was sold back in December 2019, as well as costs from the refurbishment works at PARKROYAL along Kitchener Road”, disclosed the real estate developer in a press release.
Revenue from management technology and services spiked 25% to $175.6 million. Dividend income also climbed 15% to $55.2 million during the timeframe under review.
UOL stated that purchasing sentiment for new residences in Singapore was dampened by the COVID-19 pandemic, which is not the case for One North Eden launch day, while the hospitality sector was adversely impacted
“To that extend, we appreciate the authorities’ comprehensive Budget that takes into account the various segments of businesses and the society, and safeguards for employment,” mentioned UOL Group Chief Executive Liam Wee Sin.
In fact, UOL group intends to transfer the property tax rebates to its commercial retail tenants, which were impacted by lesser footfall and overall spending.
“The construction segment is dealing with labour shortfall and uncertainties in the supply chain too. The externalities have distinctly deteriorated and this may in due course warrant a relook at the extension of ABSD deadline,” said Liam.
“Currently, it is our hope that the COVID-19 crisis can be contained quickly so that businesses can go back to normalcy.” This will improve real estate sales for UOL’s upcoming project, Clavon at Clementi.
As a whole, UOL directors proposed an initial and final dividend of 17.5 cents per share, no change from 2018.
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