SingLand, UIC post stronger Q2, H1 earnings

August 5, 2008
SingLand, UIC post stronger Q2, H1 earnings
By KALPANA RASHIWALA

OFFICE landlord Singapore Land and its parent United Industrial
Corporation yesterday both posted improved second-quarter and first-
half net earnings.

The stronger earnings - comprising net profits attributable to
shareholders and to minority interests - for the two companies were
due partly to fair value gains on investment properties. In previous
years, revaluations of investment properties had been undertaken only
at year-end.

SingLand's net profit attributable to shareholders for Q2 ended June
30, 2008, doubled to $67.99 million from $33.91 million in the
corresponding year-ago period, on the back of a 25 per cent increase
in revenue to $89.3 million and fair value gains of $54.6 million on
investment properties held by subsidiary companies. The $67.99
million net profit comprises $43.99 million (Q2 2007: $33.9 million)
from operations and $24 million from net fair value gain on
investment properties, said SingLand. Minority interests' share of
the fair value gain was $22 million (Q2 2007: nil).

SingLand attributed the higher revenue to an increase in rental
income, and higher revenue from the hotel operations of Pan Pacific
Singapore.

SingLand's net profit attributable to shareholders for the first half
rose 64 per cent year on year to $101.6 million.

As at June 30, 2008, Singapore Land Tower in Raffles Place was valued
at $1.49 billion, The Gateway at Beach Road at $1.07 billion,
Clifford Centre in Raffles Place at $562 million, Marina Square
Retail Mall at $830 million and Marina Bayfront at $84 million. Its
interest in SGX Centre 1 & 2 along Shenton Way was valued at $540
million.

UIC's Q2 net profit attributable to shareholders rose 63 per cent to
$46.3 million, with $47.5 million (Q2 2007: $28.3 million) from
operations, partly offset by a net loss of $1.2 million from
revaluation of investment properties. UIC booked a net fair value
gain of $31.9 million for investment properties held by subsidiary
companies - the net loss from revaluation attributable to
shareholders was after apportioning for minority interests.

Q2 revenue for UIC rose 59 per cent to $219.9 million, helped by
progressive sales recognition on a percentage of completion basis of
the Park Natura condo in Singapore and Tianjin Jun Long Square
development (comprising a hotel, serviced apartments, offices and a
mall).

UIC's first-half net profit rose 55 per cent to $78.4 million.

As at June 30, 2008, UIC Building at Shenton Way was valued at $504.5
million and West Mall at Bukit Batok at $311.4 million.

Neither company will be paying an interim dividend. Both companies
said that growth in office and retail rental markets is expected to
moderate whilst the residential market is expected to soften.

UIC shares closed unchanged yesterday at $2.84 while SingLand's
shares fell 12 cents to $6.28.