UIC's Q1 earnings fall 2%

SINGAPORE - Developer United Industrial Corporation (UIC) posted lower first quarter earnings due to the absence of contribution from a joint-venture residential project.

Net profit fell 2 per cent to S$59.7 million for the three months ended March 31 over the same period a year earlier.

Revenue rose 4 per cent to S$201.3 million on the back of higher trading property sales.

Earnings per share for the quarter was 4.2 cents, down from 4.4 cents a year earlier, while net asset value per share was S$4.28 as at March 31, up from S$4.24 as at Dec 31.

Office rental in the central business district is expected to soften in 2016 due to new supply of office spaces, said UIC in a Singapore Exchange filing on Friday.

It expects the residential property market in Singapore to remain weak while the property cooling measures are in place.

Given the local economic outlook, the retail market is expected to be subdued in 2016, said UIC, adding that the hotel industry is expected to remain competitive.

UIC shares closed four cents, or 1.34 per cent lower at S$2.95 on Friday (April 22) before the results were announced.

kohping@sph.com.sg