UOL profits plummeted 85% to $92.81m in Q3

Revenue from property development crashed 43% to $164.96m due to the completion of some projects.

UOL saw its profits drop 85% YoY from $609.21m to $92.81m in Q3 2018, an announcement revealed. Its revenue slipped 3% YoY to $523.77m.

The firm revealed that revenue from property development crashed 43% to $164.96m. Meanwhile, revenue from property investments and hotel ownership & operations climbed 60% and 26% to $132.47m and $172.24m, respectively.

UOL said that the revenue decline in its property development business was due to lower revenue recognition from Principal Garden and Botanique at Bartley as the projects approached completion paired with the completion of Alex Residences in September 2017. However, the decline was partially offset by Amber45, which was launched in May 2018, and higher revenue from The Clement Canopy arising from the UIC consolidation.

The firm thinks that the cooling measures introduced in July have affected sentiment in the Singapore residential property market. Despite this, their launched projects, Amber45 and The Tre Ver, have achieved healthy sales of close to 70% and 30% respectively.

“Office rents, on the other hand, are expected to be on the uptrend given the strong demand from a wide range of sectors coupled with limited new supply,” UOL said. “Retail rents remain soft as the retail scene continues to evolve due to the challenges from e-commerce and manpower shortage.”