UOL Group’s revenue increased six percent on the back of higher progressive recognition of revenues from ongoing residential projects Principal Garden and Botanique at Bartley (pictured) (Image: UOL Group Limited).
UOL Group Limited saw its net profit increase by four percent to S$80.3 million in Q1 2017, mainly due to contributions from ongoing and new development projects.
Group revenue climbed six percent to S$350.7 million on the back of higher progressive recognition of revenue from ongoing residential projects Principal Garden and Botanique at Bartley.
Revenue from property development accounted for over half of group revenue at S$183.3 million, while property investments and hotel operations contributed S$56.5 million and S$104.6 million, respectively.
In an SGX filing, UOL revealed that share of profit from associated and joint venture companies rose one percent to S$34.4 million primarily due to “new contribution from The Clement Canopy development which was launched in end February 2017, and Holborn Island, London, which was acquired in November 2016, offset largely by the absence of contribution from the Thomson Three development which was completed in May 2016”.
It noted that conditions within Singapore’s private residential market appear to be stabilising following the adjustments to the property cooling measures and improved sentiments.
Meanwhile, the pressure on office rents from new supply has abated as demand from corporates pick up. Retail rents, on the other hand, remain under pressure from an influx of new supply as well as competition from e-commerce, it added.
This article was edited by Denise Djong
