UIC Profit More Than Doubles To $1.17b

Source : The Straits Times, March 1, 2008

UIC and SingLand to pay $41.3m and $82.5m in dividends respectively

UNITED Industrial Corporation (UIC), which counts Singapore Land as a subsidiary, has racked up $1.68 billion worth of valuation gains for the 2007 financial year, taking its net profit to $1.17 billion, more than double 2006's $492.1 million.

Key buildings like Singapore Land Tower at Raffles Place and Marina Bayfront at Raffles Boulevard have both increased by over 70 per cent in value.

Singapore Land Tower is now worth $1.49 billion, up from $868.4 million a year ago, while Marina Bayfront is now worth $70 million, up from $40 million a year ago.

UIC's portfolio, which includes other properties like The Gateway at Beach Road and Marina Square, is now valued at about $5.48 billion, up from about $3.77 billion a year ago.

The valuations were done by DTZ Debenham Tie Leung.

In its financial statement for FY2007 released yesterday, UIC said that net profit of $1.17 billion comprised $123.6 million from operations and $1.05 billion from fair value gain on investment properties.

Revenue for the year was up 62 per cent to $528.4 million, and was attributed to higher sales of residential properties and revenue recognition on a percentage of completion basis, contributions from Pan Pacific Singapore Hotel (Panpac), and higher rental income.

Gross rental income for FY2007 was up 17.6 per cent to $226.1 million while gross revenue from sales of properties (held for sale) increased by 131 per cent to $157.6 million.

Gross revenue from hotel operations was $77.9 million.

In the year, UIC's Marina Centre Holding acquired the remaining 50 per cent interest in Hotel Marina City, which owns the Pan Pacific Singapore hotel.

UIC reported that earnings per share (EPS), excluding net fair value gain, were 9 cents for FY2007, up from 5.5 cents. Including net fair value gain, it was 85.3 cents, up from 35.7 cents.

SingLand, which also released its full-year results for 2007 yesterday reported a fair value gain of $1.46 billion.

Net profit for the year was $1.36 billion, up from $100.4 million a year ago.

Revenue increased by 34 per cent to $271 million for the year. It was attributed to the contribution from Panpac and higher rental.

SingLand said that gross rental income of $187.4 million increased by 20 per cent or $30.6 million.

While net profit was $1.36 billion, SingLand said that $137.5 million was derived from operations and $1.22 billion was from fair value gain on investment properties.

Excluding fair gain, EPS was 33.3 cents per share, up from 24.3 cents. Including fair value gain, EPS was 329.1 cents, up from 24.3 cents.

Singland directors have proposed a first and final dividend of 20 cents per share, amounting to $82.5 million, while UIC directors have proposed a first and final dividend of 3 cents per share amounting to $41.3 million.