Its revenue rose 8% to S$368.3 million on the back of higher conributions from property investments and technology operations

 

[SINGAPORE] Property developer Singapore Land Group : U06 +3.93% posted a 7 per cent year on year rise in its net profit for the half year of FY 2025 ended June, to S$111.4 million from S$103.7 million.

 

In a regulatory filing published on Thursday (Aug 7), the mainboard-listed subsidiary of UOL Group reported revenue of S$368.3 million, up 8 per cent. 

 

The increase in turnover was mainly driven by higher contributions from property investments and technology operations, with the newly acquired commercial building at 388 George Street in Sydney and an improved performance by its Singapore assets helping to lift turnover. 

 

Higher hardware sales to the commercial sector also played a part in raising revenue.

 

However, administrative and finance expenses shot up by 18 per cent each, as a result of salary increments and higher professional fees for the outsourcing of services, as well as higher interest rates and increased borrowing to fund an acquisition. 

 

Also weighing on the group&rsquo s profitability was a 30 per cent fall in the group&rsquo s share of results from associates, due mainly to lower contributions from the Watergardens at Canberra. The condominium obtained its temporary occupation permit in December 2024, and so had its profits fully recognised at that point. Additional capital also had to be injected into associates for development projects.  

 

The group also incurred losses in a joint venture due to a higher share of fair-value loss on the JV&rsquo s investment property.

 

Earnings per share rose to S$0.078 from S$0.072 for the year-ago period.

 

Net asset value per share rose to S$5.88 as at end-June, from S$5.87 as at end-December 2024. 

 

Singapore Land Group did not declare a dividend, as it does not follow the practice of making interim payouts to its shareholders.

Hospitality sector aside, the real estate player also expects the Singapore office sector to stay resilient in 2025, given a small pipeline of new supply

 

SINGAPORE Land Group (SingLand) reported a net profit of S$180.5 million in the second half ended Dec 31, up 76 per cent from S$102.4 million in the year ago period.

 

Revenue rose 9 per cent to S$390.5 million in H2 from S$358.7 million in the year before. 

 

Earnings per share, excluding fair-value gains on investment properties, rose to S$0.093 from S$0.07.

 

For the full year, the group&rsquo s net profit stood at S$284.2 million, up 5 per cent from the year before. Revenue rose 7 per cent to S$732.4 million. 

 

SingLand said the increase came mainly from higher revenue from hotel operations, which rose by S$24.8 million, reflecting the continued growth in Singapore&rsquo s hospitality sector.

 

The Pan Pacific Singapore, which was closed for renovation from August 2022 to May 2023, became fully operational in 2024, the group noted. 

 

Revenue from investment properties went up by $26.6 million from an improved performance by the group&rsquo s portfolio of commercial properties, particularly Singapore Land Tower, it said.

 

A dividend of S$0.045 per share was declared, up from S$0.04 in the previous year. 

 

SingLand said that Singapore&rsquo s hospitality sector is expected to remain stable for 2025, bolstered by the government&rsquo s concerted efforts in boosting tourism and paving the way for wider MICE (Meetings, Incentives, Conferences and Exhibitions) and business opportunities.

 

It added: &ldquo The Singapore office sector is expected to remain resilient in 2025, given the limited pipeline of new supply. The prime retail sector is expected to remain healthy, as Singapore remains attractive to global brands. Suburban malls, with limited supply and strong support from immediate catchments, will continue to enjoy strong occupancy and rental rates.&rdquo  

UOL Group and Singapore Land Group U06 have, through their 20:80 joint venture company (JVCo), acquired a 50% stake in 388 George Street in Sydney, Australia for A$460 million ($404.5 million). The stake was acquired from Canadian group Brookfield, which holds a stake through its 50:50 JV with Investa Gateway Office. Investa Gateway Office is a JV of Oxford Properties Group and Hong Kong-listed Link REIT.

 

The freehold 388 George Street is a 30-storey Grade A commercial building that sits on a site area of some 3,353 sqm (36,091.39 sq ft). Located on the corner of George Street and King Street, the building&rsquo s net lettable area (NLA) is around 41,098 sqm that&rsquo s made up of 91.1% (or 37,444 sqm) of office space and 8.9% of retail space at 3,654 sqm. The building was built in 1976 and was fully refurbished in 2020. It is home to a café , retail stores including Cartier&rsquo s Australian flagship store, as well as a rooftop restaurant and bar. The building has a weighted average lease to expiry (WALE) of 6.2 years by income.

 

According to the statements, UOL and Singapore Land Group&rsquo s JV paid a deposit of A$23 million upon the signing of the contract of sale. The balance of the consideration will be paid upon the completion of the sale. The sale will be completed once certain conditions, including the lack of an objection to the acquisition by the Foreign Investment Review Board of the Commonwealth of Australia (FIRB) under the Foreign Acquisitions and Takeovers Act 1975.

 

The transaction is expected to be completed within the first half of 2025. Both groups say they will finance the acquisition using internal resources and external borrowings.