Why UOL's 42% revenue plunge isn't jaw-dropping news

Apparently, analysts have been expecting this.

According to CIMB, as expected, UOL’s FY12 revenue declined by 42% yoy on lower revenues from property developments as several of the group’s residential projects were competed in FY11. 

The bulk of UOL’s residential inventory has been depleted, having sold 938 units in 2012 with a sales value of over S$1bn.  

Here's more from CIMB:

We estimate residential units still unsold make up 6% of the group’s GAV. UOL remains cautious about the residential segment, particularly the high end.

Over the last few years, the group quietly deployed over S$1bn of capital into investment properties and hotel assets, segments that management plans to grow.

We estimate recurring earnings will rise from 51% of total operating income in FY13 to 74% in FY15. Its 367-room Parkroyal on Pickering Hotel was completed in Jan 2013.

Other assets due to come on stream in the next three years include 1) Pan Pac Serviced Suites (2Q13), 2) OneKm retail mall (2014), 3) Pan Pacific Tianjin (2014) and 4) 5 Shenton Way office block (2015, under its 43%-owned associate UIC), which will underpin further NTA growth.