UIC, S'pore Land post big gains, but advise caution ahead

Aug 5, 2008
UIC, S'pore Land post big gains, but advise caution ahead

CAUTION is the watchword for both United Industrial Corporation (UIC)
and its unit, Singapore Land, with both companies casting a wary eye
on the coming months.

UIC cited 'uncertainties in the global financial market, as well as
an increasing supply of properties' when it filed buoyant second-
quarter earnings yesterday.

It added that 'growth in the office and retail rental market is
expected to moderate, while the residential market is expected to
soften'.

Singapore Land is adopting the same stance, despite doubling its
profit in the three months ended June 30.

The firm, a major office landlord and the operator of Pan Pacific
Singapore Hotel, attributed the surge to higher rental income and
room revenue.

Its net profit doubled from $34 million last year to $68 million,
while revenue shot up 25 per cent to $89.2 million.

Meanwhile, UIC's net profit rose 63 per cent from $28.3 million to
$46.3 million, again thanks to a surge in rental takings.

Revenue jumped 59 per cent to $219.9 million, due mainly to higher
property sales, higher rental income and increased revenue from Pan
Pacific Singapore's operations.

Sale of properties totalled $101.6 million in the quarter, up from
$41.5 million last year.

UIC's earnings per share stood at 3.5 cents, up from 2.1 cents in the
same quarter last year.

Net asset value per share rose to $2.45 from $2.42 as at Dec 31.

Earnings per ordinary share for Singapore Land rose from 8.2 cents to
10.7 cents.

Its net asset value was up to $9.97 from $9.92 as at Dec 31.