UOL (U14) H1 2026 earnings summary

Executive summary

• Operating PATMI rose 16% YoY to $239.8m, driven by stronger property development and property investment contributions.

• PATMI increased 23% to $252.2m; revenue fell 7% to $1,435.3m as more development projects were undertaken through joint ventures.

• Net gearing rose to 0.26 at 30 June 2026 from 0.20 at year-end, partly reflecting acquisition-related borrowings.

Financial highlights

• Operating profit rose 17% to $373.1m; JV profit share increased $83.7m YoY, partly offset by lower dividend income.

• Net fair-value gains on investment properties were $44.4m versus losses of $9.9m; other losses of $6.8m related to the Pan Pacific Tianjin disposal.

• Gross profit was $577.2m versus $606.6m; gross margin improved to 40% from 39%, mainly due to a lower relative contribution from lower-margin development.

• Net cash used in operating activities was $79.3m versus $355.9m provided in 1H 2025, mainly reflecting Dorset Road acquisition and development costs.

Outlook and guidance

• Singapore residential demand is expected to remain resilient; Thomson Reserve is scheduled to launch in 4Q2026, followed by Dorset Gardens in 1H2027 and Hougang Central in 2H2027.

• NoMad Hilton Singapore, with 173 rooms, is scheduled to open later in 2026; The Clifford targets completion in 2028.

• Written permission for the Marina Square Strategic Development Incentive and an update on its redevelopment timeline are expected by 3Q2026.

• No interim dividend was declared; interim dividends are not the usual practice.