UOL profits down 7% to $80.05m in Q3

This was due to lower profit from the group’s properties.

Property developer UOL Group’s profits fell 7% YoY to $80.05m in Q3, from hitting $85.75m in 2018, an announcement revealed. Revenue also slipped 10% YoY to $476.61m from $526.91m over the same period.

Also read: UOL profits up 48% to $195.38m in Q2

The declines were blamed on lower profit from its property developments. The group reported lower progressive recognition of revenue from three development projects–Principal Garden, The Clement Canopy and Botanique at Bartley.

However, this was partially offset by higher revenue from Amber45 and The Tre Ver, as well as higher sales from the UOL’s management services and technologies segment. As a result, revenue from property development fell 34% to $109.3m in Q3.

In contrast, revenue from its property investments operations inched up 1% YoY to $137.4m. Hotel ownership and operations revenue eased 3% YoY to $166.3m due to lower occupancies and room rates at Marina Mandarin and PARKROYAL Darling Harbour, as well as ongoing refurbishment works at PARKROYAL on Kitchener Road.

Group expenses rose 2% YoY to $115.8m in Q3 2019. Marketing and distribution expenses also expanded 11% YoY to $24m, attributed to launch expenses for Avenue South Residence, and ongoing sales of Amber45, The Tre Ver, Mon Jervois and V on Shenton.

UOL said that the limited supply and tightening vacancy of office properties should support office rents in Singapore, although they also expressed cautious sentiments from the weakening economic outlook, which could limit rental growth.