Singapore's UOL group net profit jumps 69%
TOMOMI KIKUCHI, Nikkei staff writer
SINGAPORE -- Singapore's property developer UOL Group posted a net profit of 120.8 million Singapore dollars ($97 million) for the first quarter of 2014, a 69% increase from the same quarter last year. Despite weaker property sales in the country, profit jumped thanks to a one-off gain of S$44.3 million from a land sale in Kuala Lumpur.
Revenue also increased, rising 65% to S$408.8 million. The group's hospitality and property investment business boosted the overall figure for the quarter, while residential property sales dwindled following last year's completion of major properties such as Spottiswoode Residences in Southern Singapore.
Revenue from property investments, including Pan Pacific Serviced Suites Beach Road, an extended-stay apartment that opened last May, rose 16% to S$48.7 million. Revenues from hotel operations rose 8% to S$107.2 million. On the other hand, expenses increased by 4% to S$57.4 million, as the launch of two properties in Singapore and Tianjin, China, pushed up marketing and distribution expenses.
UOL, which acquired two sites in Singapore earlier this year, has managed to grow in its "key business segments despite the mixed market conditions," said Group Chief Executive Gwee Lian Kheng in a statement. The new acquisitions "will bolster our pipeline of residential units in Singapore," he said.