UOL's net profit up 4% to $77.1m in Q1

Due to higher property development revenue.

UOL Group reported a net attributable profit of $77.1 million for the first quarter, up 4% on back of higher earnings from its property development arm.

Revenue from property development more than doubled to $164.3 million during the quarter. This was on back of higher progressive recognition of revenue from projects launched in 2014 - Riverbank@Fernvale and Seventy Saint Patrick’s - as well as from Botanique at Bartley and Principal Garden, which launched in March and October 2015 respectively.

Meanwhile, earnings from property investments, which included contributions from offices and niche malls, rose 4% to $55.5 million. Hotel revenue inched up 2% to $104.9 million.

Despite its impressive performance for the quarter, UOL noted that the outlook for the residential market is expected to remain sluggish.

Rents for office space will continue to face pressure with a large supply coming on in the second half of 2016 while retail rents will be subdued as retailers consolidate their operations in an increasingly challenging market. The hospitality business in Asia Pacific is expected to remain competitive given weak global economic growth.