Revenue for the half-year rose 16% to S$1.5 billion

 

PROPERTY player UOL Group : U14 -2.21% posted a 60 per cent fall in net profit to S$227.8 million for the six months ended Dec 31, 2024. This was mainly due to the absence of a one-time gain from the sale of Parkroyal on Kitchener Road in October 2023.

 

Otherwise, the company saw growth across its key segments that drove a 16 per cent rise in revenue to S$1.5 billion.

 

Its board proposed a first and final dividend of S$0.18 per share for FY2024, compared with a total dividend of S$0.20 per share last year that included a S$0.05 special dividend. The payment date for the FY2024 dividend will be announced later.

 

At a results briefing on Thursday (Feb 27), UOL chief executive Liam Wee Sin highlighted the group&rsquo s &ldquo very good set of results&rdquo in the year despite ongoing uncertainties. &ldquo We benefited from our diversified income stream, low gearing, active (asset enhancement initiatives), asset recycling and strong product offerings.&rdquo  

 

UOL witnessed strong performance in Singapore&rsquo s residential property market, in particular, with many buyers who were previously &ldquo fence-sitters&rdquo making purchases now, especially after the US Federal Reserve cut interest rates late last year, said Liam. 

 

There was also the emergence of a new group of buyers he dubbed &ldquo parents-assisted purchasers&rdquo in the suburban residential market.

 

UOL&rsquo s H2 revenue from property development consequently rose by S$140 million, or 26 per cent, due to higher progressive revenue recognition from the Pinetree Hill and Watten House projects.

 

Revenue from property investments rose 8 per cent, with better performance from its Singapore commercial properties and Pan Pacific Serviced Suites Kuala Lumpur. UOL also recorded new contributions from Parkroyal Serviced Suites Jakarta, which opened in January last year.

 

Revenue from hotel operations similarly increased 5 per cent, thanks to the opening of Pan Pacific Orchard in June 2023 and better performance at Pan Pacific Perth and Parkroyal Melbourne Airport after both underwent renovations in 2023.

 

For the full year, UOL&rsquo s net profit was down 49 per cent to S$358.2 million. But excluding the impact of one-time gains, the company&rsquo s operating profit after tax and minority interests was up 13 per cent to S$314.2 million. This came as revenue rose 4 per cent to S$2.8 billion.

 

UOL&rsquo s net gearing ratio inched down to 0.23 as at Dec 31, 2024, while interest cover rose to six times its net interest cost.

 

The group&rsquo s net asset value per share increased slightly to S$13.65.

 

Looking ahead, the company is &ldquo cautiously optimistic&rdquo amid ongoing uncertainty in the global economy, said chief executive Liam Wee Sin.

 

UOL will unveil the private launch of Upperhouse at Orchard Boulevard in mid-2025, followed by the Holland Drive development in the third quarter.

 

Liam believes that residential sales momentum will continue with Singapore&rsquo s growing economy and low unemployment rate.

 

But the performance of new launches will depend on &ldquo micro-market supply-demand factors, locational attributes and well-connected transportation networks&rdquo , he said.

 

Separately, UOL expects the office sector to stay resilient, with Singapore&rsquo s position as a global hub and the limited supply of new offices.

 

The domestic hospitality sector is also &ldquo likely to remain stable, driven by the government&rsquo s long-term plan to boost business events and leisure activities&rdquo , the company added.

 

When asked about moving into the Johor market, especially with the announcement of the Johor-Singapore Special Economic Zone, Liam highlighted the group&rsquo s concern over unregulated supply in the area. He added that there may also be difficulty in attracting talent to work there due to currency differences. &ldquo For me, I&rsquo d say it&rsquo s too early to decide.&rdquo

The acquisition will expand UOL&rsquo s development footprint in China

 

A UNIT of property developer UOL Group, together with an industry partner, has won a nine billion yuan (S$1.7 billion) tender for a residential site in the Hongkou district of Shanghai, China.

 

Qin Rui Jia (Shanghai) Realty Co (QRJ), an indirect subsidiary of UOL, teamed up with China Jinmao Holdings Group on a 10:90 basis for the government land sales tender, which closed on Thursday (Feb 20).

 

The site is 19,319 square metres and has a 70 years leasehold. QRJ and China Jinmao will set up a joint venture company to acquire the land-use rights and develop the site.

 

UOL Capital Investments, a unit of UOL, will contribute 358.6 million yuan towards the tender price of the site, corresponding to its indirect 4 per cent interest in the joint venture.

 

The acquisition will expand UOL&rsquo s development footprint in China, the company said in its filing. It will be financed via existing funds, external borrowings and proportionate shareholders&rsquo loans.

 

The transaction is not expected to have a material impact on UOL&rsquo s earnings for the financial year ending Dec 31, 2025.

The 1,193-unit condo is part of an integrated development in the regional hub

 

UOL, Singapore Land (SingLand) and CapitaLand Development will start previews of their Tampines project, Parktown Residence, on Friday (Feb 7) with prices starting in the S$2,100 to S$2,300 per square foot (psf) range.

 

Located in Tampines Avenue 11, the 99-year leasehold development will house 1,193 units in 12 blocks. There will be two blocks of six or seven storeys, eight blocks of 11 storeys and two blocks of 12 storeys.

 

One-bedroom units (plus study) of 463 to 506 square feet (sq ft) start from S$1.07 million or S$2,311 psf, and two-bedroom apartments from 592 to 764 sq ft are priced from S$1.33 million (S$2,246 psf). Three-bedroom units, ranging from 926 to 1,184 sq ft, start at S$2.07 million (S$2,235 psf). Four-bedroom apartments are sized from 1,335 to 1,496 sq ft, with prices starting from S$2.85 million (S$2,134 psf).

 

The largest units are the five-bedders measuring 1,679 sq ft that are priced from S$3.78 million, or S$2,251 psf.

 

The roughly 550,000 sq ft site was acquired in a state tender in November 2024 for a bid that went past the billion-dollar mark &ndash S$1.21 billion, valuing the land at S$885 per square foot per plot ratio.

 

The project is a 50-50 joint venture between UOL-SingLand and CapitaLand Development.

 

&ldquo Timely&rdquo launch

Located in District 18, Parktown Residence will be directly linked to the future Tampines North MRT station on the Cross Island line and a bus interchange. The development will also be connected to retail as well as food and beverage spaces, a community club and a hawker centre. 

 

Anson Lim, UOL&rsquo s general manager for residential marketing, said: &ldquo The launch of Parktown Residence is timely, aligning with Singapore&rsquo s strong economic rebound in late 2024, which saw growth of 4 per cent. Launching Parktown Residence at the start of the year leverages this momentum as we anticipate continued recovery this year, supported by improved household incomes and economic stability.&rdquo  

 

The last private residential launch in Tampines was Singapore&rsquo s largest condo &ndash the 2,203-unit Treasure at Tampines, developed by Sim Lian. First marketed in March 2019, it moved 272 units over its launch weekend at an average price of S$1,280 psf.  

 

In January 2025, resale prices of units at Treasure ranged between S$1,600 psf and S$1,830 psf. 

 

Over the last six months, the median price for units sold in the Tampines planning area was S$1,510 psf, according to data from URA&rsquo s Realis. 

 

Parktown Residence will book sales on Feb 22 and is expected to be completed by June 2030.

 

Besides Parktown Residence, Tampines will see another mixed-use development sited in Tampines Street 94. A Hoi Hup Realty-Sunway Developments joint venture won the plot in September 2024, beating five other parties.