Higher contributions from new and ongoing projects saw UOL Group’s revenue from property development more than double to $164.3 million in Q1 2016, from $77.3 million during the same period last year.
In an SGX filing, the Singapore-based developer reported higher progressive recognition of revenue from two residential developments launched in 2014 – Riverbank@Fernvale and Seventy Saint Patrick’s – as well as two other projects launched last year, Botanique at Bartley and Principal Garden.
Moreover, revenue from property investments, which includes contributions from the group’s offices and malls, grew by four percent to $55.5 million, noted UOL.
Revenue from its hospitality business, which includes hotels under the Pan Pacific and PARKROYAL brands, increased marginally by two percent to $104.9 million, from $102.6 million previously.
As such, the company’s total revenue surged by 39 percent to $330.1 million on an annual basis, while net attributable profit climbed five percent to $77.1 million.
However, the share of profit from associated companies and partnerships fell 12 percent to $34.1 million, mainly due to the absence of contribution from the Archipelago project. Completed in September 2015, the development is a joint venture with United Industrial Corporation.
Nevertheless, UOL’s gearing ratio remained unchanged at 0.27 during the first quarter.
Moving forward, the company believes the housing market outlook remains gloomy.
Similarly, the office rental market will continue to be under pressure due to the large upcoming supply in H2 2016, while the retail leasing sector will likely be subdued as tenants consolidate their operations amid an increasingly challenging business environment.
UOL’s hospitality business in Asia Pacific is expected to remain competitive, given the weak growth in the global economy.