Lower fair value gain on investment properties saw second-quarter net profit at United Industrial Corporation slump 66 per cent to $58.9 million. Still, revenue was up 14 per cent to $191.2 million, mainly on higher trading property sales.
For the half-year, net profit was down 44 per cent to $119.7 million, though revenue rose 22 per cent to $384.3 million. For the quarter, sales of trading properties shot up 47 per cent to $62.3 million with progressive sales recognition for V on Shenton, Mon Jervois, Alex Residences and Pollen & Bleu.
Revenue from hotel operations rose slightly by 3 per cent to $35.1 million, while gross rental income from investment properties dipped 1.6 per cent to $67.2 million.
Non-controlling interests fell 41 per cent to $8.6 million, partly due to UIC's increased interest in Singapore Land after the latter was taken private last year.
It said yesterday that office rental in the Central Business District is likely to remain steady till the end of this year, but is expected to soften next year due to new supply.
AT A GLANCE
REVENUE: $191.2 million (+14%)
NET PROFIT: $58.9 million (-66%)
No dividend declared for the period
However, demand for retail spaces will be slow "as retailers tackle manpower shortage, growing online shopping and competition".
The residential property market is expected to remain weak with prevailing cooling measures, it said.
As for the hotel industry, it is "expected to remain competitive due to new hotel room supply and declining tourist arrivals".
Earnings per share for the quarter was four cents, up from 3.9 cents in the same period last year. Net asset value per share was $4.14 as at March 31, from $4.09 as at Dec 31.