The panel comprised (from left) PPHG Chief Executive Officer Choe Peng Sum, UOL Chief Financial Officer Kwa Bing Seng, UOL Group Chief Executive Liam Wee Sin, Singapore Land Group Chief Executive Officer Jonathan Eu, UOL Chief Operating Officer Neo Soon Hup, and UOL Chief Investment Officer Shirley Ng.
UOL reported a 44% increase in net attributable profit to $707.7 million for the financial year ended 31 December 2023 (FY23). The increase was due mainly to a gain of $442.3 million from the sale of a wholly-owned subsidiary which held PARKROYAL on Kitchener Road.
Revenue from property development decreased 39% to $1.21 billion with lesser contribution from Avenue South Residence, The Tre Ver and Clavon in Singapore and Park Eleven in Shanghai, whereas AMO Residence and The Watergardens at Canberra in Singapore recognised more revenue during the same period.
Revenue from property investments was two per cent up at $512.5 million in FY23 mainly on account of contributions from commercial properties in Singapore and serviced suites. Revenue from hotel operations rose 38% to $762.8 million for the full year as all the Group’s hotels, except for those under major refurbishment, continued to benefit from the rebound in global travel in their respective countries. Revenue from management services and technologies rose 26% and 10% respectively
A special dividend of 5.0 cents per share on top of a first and final dividend of 15.0 cents has been proposed by the Board of Directors.
On 27 February 2024, UOL hosted an in-person results briefing for FY23. About 30 journalists and analysts attended the event held at PARKROYAL COLLECTION Marina Bay.
UOL Group Chief Executive, Mr Liam Wee Sin, said the Group celebrated 60 years of creating value and shaping a sustainable future in 2023, backed by strong governance and execution track record. He added: “关关难过关关过. It was a challenging year, especially in the rising and high interest rate environment, yet we hit several successes and milestones to cap off six decades of building a robust property and hospitality group.”
Mr Liam shared that the Group delivered a strong set of results for 2023, arising from the steady profit contribution across all business segments. He said: “Amidst a challenging economic environment and following two rounds of cooling measures, sales in our Singapore residential projects exceeded expectations, especially for Watten House which achieved 64% sales booking last year. This reflected strong demand for good products in attractive locations.
“Our office and retail portfolio saw positive rental reversions. Ongoing asset enhancement initiatives will contribute incrementally to our bottom line. We will capitalise on the rebound of the hospitality sector with our refurbished and newly opened hotels.”
Mr Liam noted that last July, UOL acquired a 50% stake in a five-hectare mixed retail cum residential site at Tampines Avenue 11 and was last week awarded the Orchard Boulevard site in a government land sales tender.
“Going forward, we expect demand for freehold residential projects and integrated developments to be healthy. In 3Q24, we expect to launch Meyer Blue, a 226- unit freehold development, which will benefit from the future Long Island project announced by the government,” he added.
Most research houses expressed confidence in UOL’s future performance. Citi Research, DBS, Goldman Sachs and JP Morgan issued “Buy” calls, citing good execution and strong balance sheet of the Group.