UOL (U14) H2 2023 earnings summary

Executive summary

• FY2023 PATMI rose 44% to $707.7m, including a $442.3m gain from the sale of the subsidiary holding PARKROYAL on Kitchener Road.

• Revenue fell 16% to $2,681.7m as weaker property development outweighed stronger hotel operations.

• Profit before fair value and other gains/losses and tax declined 24% to $475.1m, reflecting weaker development and associate/JV performance and higher finance expenses.

Financial highlights

• Profit before tax rose 7% to $948.0m; other gains were $452.7m versus a $5.1m loss in FY2022.

• Investment-property fair value gains fell to $20.2m from $268.2m; Singapore gains were partly offset by losses in the UK and Australia.

• EPS was 83.8 cents, up 44%; EPS before fair value and other gains/losses was 32.8 cents, down 20%.

• Finance expenses rose 56% to $200.4m; administrative expenses increased 31% to $158.6m, while marketing expenses fell 17% to $115.1m.

Outlook and guidance

• Singapore GDP is forecast to grow 1%–3% in 2024; inflation, geopolitical tensions and economic uncertainty may keep conditions volatile.

• Hospitality is expected to grow with travel recovery, while retail rents should be supported by tourism and limited space supply.

• Meyer Blue, a 226-unit freehold project, is expected to launch in 3Q24; demand for freehold homes and integrated developments is expected to remain healthy.