UOL H1 net profit rises 23% to S$252.2 million on joint venture profits

[SINGAPORE] Property developer UOL Group posted a 23 per cent year-on-year increase in net profit to S$252.2 million for the first half ended Jun 30, from S$205.5 million.

The profit growth was driven mainly by a higher share of profits from joint venture property developments and net fair value gains on investment properties, the company said in a bourse filing on Wednesday (Aug 12).

Earnings per share for H1 rose to S$0.2980 a share, from S$0.2433 a share in the same period a year prior.

Revenue fell 7 per cent year on year to S$1.4 billion in H1 from S$1.5 billion, primarily due to lower revenue from property development as the group entered into more development projects through joint ventures.

Share of profit from joint venture companies jumped significantly to S$83.8 million from S$24,000 previously, mainly from profit recognition for Parktown Residence and Skye at Holland.

Property development revenue declined 14 per cent to S$628.8 million, down from S$731.7 million in H1 2025.

This was due to lower progressive revenue recognition for Pinetree Hill and Watten House, as well as the absence of revenue from AMO Residence, which obtained its temporary occupation permit in October 2025.

The decrease was partially offset by new revenue recognition from Upperhouse at Orchard Boulevard and higher contributions from Meyer Blue and The Sky Residences in London.

Revenue from property investments rose 4 per cent to S$316.7 million, supported by higher contributions from Singapore Land Tower and West Mall following the completion of asset enhancement initiatives, as well as Varley Park, which was acquired in August 2025.

This was partially offset by the disposal of Kinex in October 2025.

The group recorded net fair value gains on its investment properties of S$44.4 million for the period, reversing fair value losses of S$9.9 million in the corresponding period a year earlier.

This was offset by other losses of S$6.8 million due to the sale of Pan Pacific Tianjin, compared with other gains of S$13.3 million in H1 2025 from the sale of Parkroyal Yangon.

Hotel operations revenue edged lower to S$373.2 million, from S$375.4 million previously.

No interim dividend was declared for the period, unchanged from the previous year.

UOL’s net gearing ratio rose to 0.26 as at Jun 30, from 0.20 as at Dec 31, 2025, as higher borrowings were used to fund land and property acquisitions.

Net tangible assets per share stood at S$14.16 as at end-June, up from S$13.88 as at Dec 31, 2025.

Looking ahead, the group noted that Singapore’s residential market is expected to remain resilient, supported by healthy demand-supply dynamics and strong household balance sheets, with new home sales likely to remain stable.

It added that the Singapore office sector is well-positioned to sustain positive momentum, while the retail sector is expected to stay on a stable footing.

For hospitality, stable visitor arrivals and events will support the sector, though operating conditions remain challenging due to global uncertainties, manpower constraints and rising costs.