The lack of contributions from a joint-venture residential project sent first-quarter earnings falling at developer United Industrial Corporation (UIC).
Net profit fell 2 per cent to $59.7 million for the three months to March 31, compared with the same period a year earlier, while revenue rose 4 per cent to $201.3 million on the back of higher trading property sales.
Transactions of trading properties grew 12 per cent to $70.4 million with progressive sales recognition for Alex Residences, Mon Jervois and Pollen & Bleu. These residential projects were launched in 2012.
They were partially offset by lower progressive sales recognition for V on Shenton, another residential project launched in 2012.
Gross rental income from investment properties increased 1 per cent to $68.7 million while turnover from information technology operations dropped 3 per cent to $23.5 million.
Sales from hotel operations remained unchanged at $36.1 million.
AT A GLANCE
REVENUE: $201.3 million(+4%)
NET PROFIT: $59.7 million (-2%)
Lower contributions from the Archipelago - which was completed in September last year - and Thomson Three joint venture residential projects led to a 63 per cent drop in the share of joint ventures' profit to $2.6 million.
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 $4.28 as at March 31, up from $4.24 as at Dec 31.
Office rents in the central business district are expected to soften this year due to the new space coming onstream, said UIC in a Singapore Exchange filing yesterday.
It expects the residential property market here to remain weak while cooling measures are in place.
Given the local economic outlook, the retail market is expected to be subdued this year, said UIC, adding that the hotel industry is expected to remain competitive.
UIC shares closed four cents, or 1.34 per cent, lower at $2.95 yesterday before the results were announced.