Property firm UOL Group has posted a 71-percent drop in net profit to just over S$100 million during the first quarter of the year.
This was largely attributed to negative goodwill on acquisition of interests in an associated firm during Q1 2009.
However, with its property development, investment and hotel operations’ better performance, revenue increased 27 percent to S$250 million.
With two new projects launched last year being fully sold, its property development was the leading contributor to sales, said UOL.
Revenue from property development climbed 48 percent year-on-year to S$130.4 million during the first quarter.
Hotel operations grew 12 percent to S$77.7 million and property investment rose four percent to S$36.6 million.
Management services saw an increase of 19 percent in revenue to S$4.6 million and revenue per available room improved across its hotels.
“With Singapore’s economy projected to grow seven to nine per cent this year and the recent enthusiasm in land-bidding and home-buying activities, we hope to see sustained interests in the residential market,” said Gwee Lian Kheng, chief executive officer of UOL.
“The strong double-digit growth in visitor arrivals should continue to drive up the demand for hotel rooms in Singapore and hence benefit our hotels.”
Waterbank at Dakota, its latest residential development, is now 99 percent sold at an average price of above S$1,100 psf.