United Industrial Corp posts stronger Q2 profits on higher revenue

Property group United Industrial Corp's second quarter net profit rose by 65 per cent to $135.3 million.

Net profit from operations was up 18 per cent at $38.8 million, stripped of fair value gain on investment properties.

Revenue for the three months to June 30 rose by 9 per cent to $151.9 million, attributable mainly to higher revenue from hotel operations but partially offset by lower sales of trading properties.

Revenue from hotel operations increased by $23.2 million to $31.5 million following the reopening of Pan Pacific Singapore hotel after closure for renovation from April to August 2012.

Sales of trading properties fell by $8.6 million to $32.8 million, due mainly to lower contribution from The Trizon residential project, which was completed in May last year.

Gross rental income from investment properties decreased by $1.3 million to $66.2 million due to redevelopment of the Marina Bayfront office and upgrading works at certain sections of the Marina Square retail mall.

Earnings per share climbed to 9.8 cents from six cents previously while net asset value per share firmed to $3.51 compared to $3.40 as at Dec 31.