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UOL reported net attributable profit of $135 million for the half-year ended 30 June 2023 (1H23), down 64% due mainly to 98% decline in lower attributable fair value gains on investment properties of $3.5 million against $190 million for the same period last year.

On 10 August 2023, the panel comprising UOL Group Chief Executive Liam Wee Sin, Singapore Land Group Chief Executive Officer Jonathan Eu, PPHG Chief Executive Officer Choe Peng Sum, UOL Chief Financial Officer Kwa Bing Seng, UOL Chief Operating Officer Neo Soon Hup, and UOL Chief Investment Officer Shirley Ng, had virtual briefings with close to 30 journalists and analysts on the results.

Group pre-tax profit before fair value and other gains/losses totalled $228.8 million, down 27% from $315.5 million in 1H22 due mainly to lower profit from property development and higher net finance expenses.

Reflecting the decline in revenue recognition from property development, Group revenue fell 11% to $1.37 billion compared with the same corresponding period last year.

Revenue from property development fell 32% to $676.3 million on lower contributions from Avenue South Residence and The Tre Ver in Singapore, as well as Park Eleven in Shanghai. This was partly offset by higher progressive revenue recognition from AMO Residence and The Watergardens at Canberra in Singapore.

Revenue from hotel operations rose $135.2 million, or 66%, to $341.5 million in 1H23 as almost all the Group’s hotels continued to benefit from a rebound in tourism in their respective countries. Hotels in Singapore recorded the largest increases, followed by PARKROYAL COLLECTION Kuala Lumpur which opened in June 2022, Pan Pacific London and PARKROYAL Darling Harbour in Australia.

UOL Group Chief Executive Liam Wee Sin said: “We have been proactively engaged in asset management and asset enhancement initiatives of our existing commercial portfolio while looking for acquisition opportunities. For hospitality, we recently opened Pan Pacific Orchard, entered into a sale and purchase agreement for PARKROYAL on Kitchener Road, and continue to review our hotel portfolio with the view of unlocking value at an opportune time.”

On the residential property market, UOL expects growth to be subdued by the property cooling measures, macroeconomic headwinds, and a higher supply of new homes in the next 12 months.

“Our 50% stake in the recent acquisition of a mixed retail cum residential site in Tampines replenishes our pipeline of residential units in the Outside Central Region. With a 5-hectare site area accommodating about 1,190 residential units, this will be one of the largest integrated developments with transport hub and direct MRT connectivity,” said Mr Liam.

Meanwhile, office leasing sentiment in Singapore is becoming cautious due to lower projected economic growth. Office rents are expected to grow at a slower pace, anchored by a tight supply of spaces in the medium term.

The retail sector should benefit from the recovery of visitor arrivals. Retail rents are expected to remain supported by the low pipeline supply of spaces.

UOL believes the hospitality sector in Singapore is likely to continue its growth, supported by a continued pick-up in leisure and corporate travel, which will benefit the Group’s hospitality business.