UOL's net profit up 306% in 1H2022 on property development, hospitality
By The Edge Singapore
/ EdgeProp Singapore |
Artist's impression of AMO Residence, where over 98% of 372 units were snapped up on the first day of launch on Jul 23, 2022 (Picture: UOL Group)
SINGAPORE (EDGEPROP) - On Aug 11, UOL Group reported net of $371 million for the six months to June 30, its 1HFY2022, up 306% y-o-y, on the back of a rebound in hotel operations, all round better business and fair value and other gains of $190 million. Revenue rose 36% to $1.53 billion while group pre-tax profit before fair value and other gains/losses rose 47% y-o-y to $315.5 million.
Revenue from property development rose 45% to $999.9 million on higher progressive revenue recognition from Clavon, Avenue South Residence and The Watergardens at Canberra in Singapore, while more units were handed over for The Sky Residences in London and Park Eleven in Shanghai.
At the 372-unit AMO Residence at Ang Mo Kio Avenue 1, UOL reported strong sales, with over 98% of the units sold on the first day of launch on Jul 23, 2022. It was the first major launch in Ang Mo Kio in eight years. AMO Residence is developed jointly by UOL Group, Singapore Land Group and Kheng Leong Co. in a 60:20:20 joint venture.
UOL’s hotel operations saw a 64% increase in revenue to $206.3 million in 1H2022. This was due mainly to contributions from Parkroyal Collection Marina Bay in Singapore, which fully opened in May 2021 following a major refurbishment; and opening of Pan Pacific in London in Sept 2021, Other hotels also benefitted from the reopening of borders as well as a resumption of economic and social activities in their respective countries, says UOL in its release.
One Bishopsgate Plaza in London, a mixed-use development that includes The Sky Residences and the first Pan Pacific Hotel in Europe (Artist's impression: UOL Group)
Investment income grew 48% to $26 million owing to an increase in dividends from United Overseas Bank in FY2022 compared with the year before.
Property investments recorded a slight one percent drop in revenue to $247.9 million in 1H2022 on lower contributions from Singapore Land Tower in Raffles Place which is undergoing an asset enhancement initiative. This was partly offset by better performance from serviced suites.
Extension work has started at Odeon Towers in 1Q2022, while redevelopment works for Clifford Centre and Faber House are expected to commence in 2023.
Costs rose, in particular finance expenses, which rose 68% y-o-y to $46.6 million. Contributing to the increase were: the issuance of fixed rate notes at 2.33%, the drawdown of fixed rate loans, the rising interest rate environment, and a new loan drawn for the acquisition of the Watten Estate site in April 2022.
The weighted average interest rate on Group external borrowings was 1.74% in 1H2022 against 1.23% for 1H2021.
Marketing and distribution expenses for the group rose 23% to $64.4 million in 1H2022, with the resumption of marketing activities and the opening of Pan Pacific London in September 2021, as well as higher selling expenses for The Watergardens at Canberra, Avenue South Residence and V on Shenton in Singapore, and The Sky Residences in London.
Check out the latest listings near AMO Residence, Clavon, Avenue South Residence, The Watergardens at Canberra
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