Singapore Land has announced that its net earnings for the year ended 31 December 2010 reached S$661.7 million, on the back of a S$538.5 million fair-value gain on investment properties.
This is a reversal from the company’s net loss of about S$266 million in 2009, due to a S$608.6 million fair-value loss on investment properties, attributed to the decline in office values after the worldwide recession.
Meanwhile, its parent company United Industrial Corporation (UIC) recorded a net profit of S$703 million for 2010, compared with a S$142.8 million net loss in 2009. It posted a S$691 million fair-value gain on investment properties in 2010, compared with a fair-value loss of S$658.5 million in the previous year.
Both companies said the Singapore office market will likely stay favourable, with expected growth in the economy.
Retail rents will likely remain stable due to the better supply of retail space in 2010, despite continued growth in visitor arrivals and increasing employment rates.
Singapore Land’s revenue jumped 33 percent to S$527.2 million in 2010, on the back of higher sales of trading properties and higher revenue at the Pan Pacific Singapore hotel.
UIC’s revenue, on the other hand, eased four percent or S$38.6 million to S$972 million, due to lower sale of trading properties.