Property group United Industrial Corp has reported a 33 per cent fall in net profit to $74.7 million in the second quarter after booking a fair value loss on investment properties reversing gains a year ago.
In the three months that ended June 30, UIC took a fair value loss of $3 million, reversing from a $51.5 million fair value gain in the same period a year earlier.
Removing these effects, UIC's net profit from operations was $77.7 million, 29 per cent higher year on year.
Revenue in the second quarter rose 53 per cent to $361.9 million, lifted by a 123 per cent rise in sales recognition from trading properties to $231.5 million.
In particular, UIC saw higher sales in Pollen & Bleu and progressive sales recognition for V on Shenton.
In line with this, the cost of sales rose 62 per cent to $254.4 million, owing to the cost of properties held for sale that were sold.
AT A GLANCE
NET PROFIT: $74.7 million (-33%)
REVENUE: $361.9 million (+53%)
Gross rental income from investment properties remained stable at $67.9 million versus $67.8 million a year ago.
Revenue from hotel operations dipped 1 per cent to $34.4 million.
Second-quarter earnings per share including fair value losses and gains on investment properties was 5.2 cents, down from 7.9 cents a year earlier.
Net asset value per share was $4.44 as at June 30, up from $4.39 as at Dec 31 last year.
Earnings were posted after market close. The counter closed unchanged at $3.21 yesterday.
UIC said: "The rental market is expected to improve with the continued steady take-up of office and retail space.
"With the steady response from sales launches and the aggressive land bids by developers, the improving sentiments in the residential market are expected to continue.
"The hotel sector will remain competitive but positive, despite new hotel room supply coming on stream."
On June 23, UOL, the property flagship company of Dr Wee Cho Yaw, said it would raise its stake in UIC from 44.7 per cent to 48.9 per cent via a share swap with Haw Par Corp, another Wee family-controlled entity.
On June 29, Dr Wee lifted his stake in UIC to 49.76 per cent from 49.757 per cent by acquiring new shares as part of a scrip dividend scheme at $2.99 each.
The same day, Philippine tycoon John Gokongwei Jr lifted his stake in UIC to 37.06 per cent from 37.03 per cent using the same scheme.