UIC posts 5% rise in FY17 earnings to $301 mil on higher sales and share of JV results

By Michelle Zhu / The Edge Singapore | February 23, 2018 6:56 PM SGT
SINGAPORE (Feb 23): United Industrial Corporation (UIC) reported earnings of $301 million for FY17, up 5% from $286 million in FY16 on higher revenue and share of joint ventures’ results.
Revenue for the full FY17 grew 25% to $1.3 billion from a year ago, mainly attributable to higher revenue contributions from the group’s property trading segment due to higher sales in Alex Residences and Pollen & Bleu.
Meanwhile, revenue from technology and hotel operations grew 12% and 2% respectively, while revenue from property investments fell by 1% compared to FY16.
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Rooftop pool at the 429-unit Alex Residences off Alexandra Road (Credit: Samuel Isaac Chua/The Edge Singapore)
In line with the higher revenue, selling and distribution costs grew 91% to $53.5 million from $28 million a year ago.
Share of results of joint ventures increased to $33.6 million in FY17 from just $1.1 million in the previous year.
This was mainly due to the new contribution from The Clement Canopy residential project launched for sale in Feb 2017, as well as a full year’s contribution from the UK Holborn property which was acquired in Nov 2016.
The group also recorded a lower fair value loss of $4.5 million for FY17 compared to $36.6 million a year ago.
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A dividend of 3 cents has been declared for the period under review, unchanged from that of FY16.
In its outlook, UIC says its expects growing demand for new office space to sustain rising office rentals while the retail rental rates will remain challenging amid competition from new retail space and online operators.
The group nonetheless expects stronger demand to return to the residential property market given prospects of a price recovery and robust global growth, and says it will remain careful in the current aggressive land-bidding climate and the recently announced increase in buyer’s stamp duty (BSD).
UIC adds that it is also expecting the hotel industry to improve despite new hotel room supply in the market.
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This story, written by Michelle Zhu for The Edge Singapore, first appeared on Feb 28.