UOL Group revealed an 81 percent fall in its net profit. The property developer’s profit plummets to $147.2 million for the previous year, ending in December 31. The fall was largely due to a fair value loss amounting about $106.8m on its investment properties versus the $590.5m that it gained in 2007, in spite of the 27 percent increase in revenue to $899.1m. This increase was pushed by residential projects like The Regency at Tiong Bahru and Duchess Residences in Bukit Timah.
UOL has suggested 7.5 cents per share final dividend payout. Hotel Plaza, which is a listed unit of UOL, encounters an 85 percent in net profit to 12.8m, owing to a $9.8m fair value loss on its investment properties and a $37m impairment charge for a hotel development set in Upper Pickering Street. UOL saw an increase in its debt gearing ratio from 21 percent to 42 percent.
UOL is set to launch two residential projects – Green Meadows in Upper Thomson and Double Bay Residences in Simei – for the current year. Gwee Lian Kheng, UOL chief executive, said that the year is ‘difficult’ for the group as will not put a large amount of investment in property development.
The recession greatly affects mid-tier to high-end market to date. Even so, there is still hope with the mass market home segment.
“There must be some sunlight but when, I don’t know”, Mr. Gwee said. According to the group, around 50 percent of UOL’s three projects, including One Amber, One North Residences and Pavilion11, which are set to acquire occupation permits were acquired through deferred payments. The three projects remain on a stable position.
From 95.38 cents, the group’s earnings plummets to 18.5 cents and from $4.96 in the previous year, its net asset value per share dropped to $4.26 as at December 31.
Meanwhile, high-end developer SCGlobal’s revenue remains firm at 129.1million, with a reported 57 percent increase in full-year net profit to $44.5m.
A fall of 46 percent to $4.2m was seen in Q4 net profit as AVJennings lost $5.9m shares, despite a 149 percent increase in revenue to $28m. AVJennings reported a profit of $33.1m on its investment property Newton 200, though this gain was somewhat compensated by the $30m allowance for foreseeable losses, with regards to its Sentosa Cove and Ardmore Park sites.
For Q4, profits per share rolled up to 1.07 cents and for the year, 11.27 cents. This is in comparison with the previous year’s 1.97 cents and 8.18 cents, respectively. As at December 31, net asset value per share went down by one cent since the previous year, with 88 cents from 89 cents. Gearing stayed at 0.7 times, as measured by debt to total assets.
UOL shares closed at $1.66 the previous day, which was three cents lower. SCGlobal shares, meanwhile, saw a drop of one cent to 40 cents.