United Industrial Corporation (UIC) warned of continued softness in the office, retail, hospitality and residential property markets ahead, as it reported a slight drop in third-quarter net profit yesterday.
The firm said its bottom line for the three months ended Sept 30 fell 2 per cent from the same period a year earlier to $64 million.
Revenue for the quarter surged 38 per cent to $262 million year on year, owing mainly to higher revenue recognised on residential property sales.
UIC enjoyed progressive revenue recognition and higher sales for its residential projects this past quarter, particularly from V on Shenton and Alex Residences.
Gross rental income from investment properties increased slightly too, while revenue from information technology operations increased 7 per cent year on year and revenue from hotel operations remained stable, UIC said.
Earnings per share dipped to 4.5 cents in the third quarter, from 4.6 cents a year earlier. Net asset value per share stood at $4.35 at the end of September, up from $4.24 at the end of December last year.
AT A GLANCE
NET PROFIT: $64 million (-2%)
REVENUE: $262 million (+38%)
UIC said the business environment continues to be challenging.
An impending office supply hike in the Central Business District will continue to soften office rental rates, it noted.
Sentiments in the private residential market remain weak, with cooling measures and slowing economic growth, it added.
And cautious spending amid economic headwinds and high labour costs continued to weigh on demand and depress retail rental.
With increased supply, the hotel sector will remain competitive too.
UIC's commercial and retail buildings include 5 Shenton Way, Novena Square, Singapore Land Tower and the SGX Centre. Its hotel portfolio includes the Tianjin Sheraton and Tianjin Jun Long Square.
UIC shares ended flat at $2.78 yesterday.