Property developer UOL posted a drop in its third-quarter results despite strong contributions from its Singapore residential projects.
Net profit dipped 2 per cent to $100.8 million for the three months ended Sept 30.
Revenue fell 18 per cent to $354 million compared with the same quarter last year, when the top line got a lift from the completion of a project in Tianjin, China, said UOL in a statement yesterday.
Its Singapore projects such as Riverbank@Fernvale and Botanique at Bartley contributed the bulk of earnings for property development in the third quarter.
Other than the hotel ownership and operations, all its other businesses contributed more to the overall earnings.
Revenue from the hotel business dropped 4 per cent to $105.6 million owing to refurbishment works at hotels in Perth and Yangon, as well as weaker exchange rates for the Malaysian ringgit and Australian dollar.
Property investment revenue grew 16 per cent to $56.4 million, with contribution from OneKM mall in Paya Lebar, which opened at the end of last year.
Share of profits from associated companies rose 12 per cent to $34.5 million, mainly from United Industrial Corporation, which saw higher contributions thanks to its development properties. Share of profit from joint-venture companies increased 14 per cent to $10.3 million owing to strong contribution from Thomson Three, which UOL owns 50 per cent.
Earnings per share for the quarter dropped from 13.23 cents to 12.76 cents, while net asset value per share rose to $9.74 as at Sept 30, from $9.68 as at Dec 31 last year.
The company expects buying sentiment in the Singapore residential market to remain muted, and foresees weakening demand for its office and retail spaces.
It also expects challenging times ahead for the hospitality sector due to the subdued economic outlook in the Asia Pacific.
UOL shares closed five cents lower at $6.46 yesterday, ahead of its results announcement.