SingLand, UIC Both Enjoy Higher Q2 Earnings

Source : The Business Times, August 4, 2007

SingLand's profit rose 32% while UIC's profit surged 42%
















CBD office landlord Singapore Land and its parent United Industrial Corp (UIC) have both reported higher second-quarter earnings.

SingLand's net profit for the three months ended June jumped 32 per cent to $33.9 million from $25.8 million for the previous corresponding period. This raised its first-half net profit to $62 million, up 29 per cent.

For UIC, Q2 net profit surged 47 per cent to $28.3 million while H1 net earnings were 39 per cent higher at $50.5 million.

Both companies said they will revalue investment properties at year-end and any surplus or deficit arising from the revaluation shall be taken to the income statement then, to comply with Financial Reporting Standard 40 - Investment Property. SingLand said that on transition to FRS 40 on Jan 1, 2007, the asset revaluation reserve of $1.22 billion as at Dec 31, 2006 was transferred to the opening retained earnings as at Jan 1, 2007. For UIC, the asset revaluation reserve transferred was $9.3 million.

SingLand - whose portfolio of office properties include Singapore Land Tower, Clifford Centre, part of SGX Centre and The Gateway - posted a 33 per cent increase in Q2 revenue to $69 million. The increase was due partly to a $22 million contribution booked from Pan Pacific Singapore hotel after SingLand subsidiary Marina Centre Holding acquired the remaining 50 per cent interest in the hotel in April.

As well, gross rental income rose 17 per cent or by $6.8 million to $45.4 million in Q2 on the back of higher rental rates and improved occupancy. Contributions from associates were $3.4 million higher at $8.75 million, chiefly because of higher contribution from the One Amber residential development, in which the group has a stake.

SingLand's earnings per share rose from 6.2 cents in Q2 last year to 8.2 cents in Q2 2007. Net asset value per share fell from $7.50 as at end-Dec 2006 to $7.37 as at end-June 2007.

UIC - which was in the limelight in April for its purchase of the namesake building along Shenton Way under a collective sale pricing the asset at $600 million - posted a 68 per cent jump in Q2 revenue to $135.5 million due to higher sales of residential properties, contribution from Pan Pacific Singapore and improved rental income.

Sales of the One Amber and Grand Duchess at St Patrick's residential developments, which have been fully sold, were progressively recognised on a percentage of completion basis.

Contributions from associates improved due largely to a higher contribution from The Waterfront project in Hong Kong.

UIC's earnings per share for Q2 2007 was 2.1 cents, up from 1.4 cents in Q2 2006. Net asset value per share stood at $1.76 as at June 30 this year, against $1.77 as at Dec 31, 2006.