UOL (U14) H1 2024 earnings summary

Executive summary

• 1H2024 attributable profit was $130.4 million, down 3% YoY, as attributable fair value losses offset stronger property investment and hospitality earnings.

• Revenue fell 7% YoY to $1,271.8 million, mainly due to lower property development contributions; pre-tax profit before fair value and other gains/losses rose 7% to $245.3 million.

• Net gearing was 0.27 at 30 June 2024, up from 0.24 at year-end 2023, with interest cover of 5x.

Financial highlights

• Gross profit rose to $518.4 million from $503.2 million, and gross margin increased to 40% from 37%.

• Investment property fair value losses were $8.0 million versus gains of $44.6 million in 1H2023; attributable fair value losses were $12.2 million.

• Finance income rose 65% to $25.7 million; finance expense increased 9% to $102.7 million, mainly due to higher interest rates.

• EPS was 15.43 cents, down from 15.99 cents on both basic and diluted bases.

Outlook and guidance

• MEYER BLUE, a 226-unit freehold project in an 80:20 joint venture with SingLand, targets launch in September 2024.

• PARKTOWN Residence, a 1,195-unit mixed-use project with CapitaLand Development and SingLand, targets launch in 1Q2025; Orchard Boulevard and Holland Drive launches are targeted for 1H2025 and 2H2025.

• Singapore’s 2024 GDP growth is forecast at 1.0%–3.0%; residential price growth is expected to moderate, while office rents are expected to remain resilient.

• Retail recovery and hospitality growth are expected to continue, supported by leasing demand and tourism recovery; no interim dividend was declared.