SingLand's 2Q13 profits dropped 3% to $48.3m

But there's a bright spark, analysts said.

According to Maybank Kim Eng, SingLand reported a 2Q13 core PATMI of SGD48.3m (-3% QoQ; +14% YoY), after excluding net revaluation gains of SGD98.9m. 1H13 core PATMI of SGD97.9m was in line with expectations, making up 48% of our full-year estimates. 

Analysts expect core operations to remain relatively flat in 2H13, with few positive catalysts in sight.

Here's more from Maybank Kim Eng:

Stronger uplift in recurrent income expected from FY15. On a QoQ basis, SingLand reported relatively flat growth in rental and hotel income.

We see little upside from office rental reversion and management is cautious about the outlook for the hotel industry on the back of slower visitor growth, new supply pressure and the ongoing labour crunch. The bright spark is likely to come from its retail exposure, but the extension wing at Marina Square is expected to be completed only in 4Q14.