Higher Rents Boost UIC, SingLand Q1 Earnings

Source : The Business Times, April 26, 2008

HIGHER hotel and rental takings boosted the earnings of Singapore Land and parent United Industrial Corp (UIC) in the first quarter of this year.

Profit driver: SingLand's rise in net profit was due mainly to contribution from the Pan Pacific hotel

SingLand's net profit rose 20 per cent to $33.7 million as revenue rose 85 per cent to $83 million in the three months to March 31, due mainly to the contribution from the Pan Pacific Singapore hotel and higher rental income. Earnings per share increased to 8.2 cents from 6.8 cents.

Following Marina Centre Holdings' acquisition in April 2007 of the remaining 50 per cent interest in Hotel Marina City (HMC), which owns Pan Pacific Singapore, HMC became a wholly owned subsidiary of SingLand.

Gross rental income at $52.2 million was up 20 per cent, attributable mainly to higher rents, SingLand said.

'The Singapore office and retail rental market is expected to remain positive with moderate economic growth and tight supply of office space,' it said. 'With the ongoing global financial and economic uncertainties, the cautious sentiment in the private home market is expected to prevail.'

SingLand is a key office landlord here, with assets including Singapore Land Tower and SGX Centre in the heart of the business district.

At parent UIC, Q1 net profit increased 45 per cent to $32.1 million while revenue grew 85 per cent to $150.4 million. The jump in revenue was attributed to the consolidation of revenue from Pan Pacific hotel, higher sales of properties held for sale and recognised on percentage of completion basis, and higher rental income. UIC's earnings per share rose to 2.3 cents from 1.6 cents.

SingLand shares closed down three cents at $7.27 yesterday, while UIC shares fell two cents to $2.77.