SINGAPORE (Aug 4): UOL reported 2Q17 earnings rose 59% to $109.4 million from a year ago due mainly to higher progressive recognition of revenue from Principal Garden, a condominium project in Singapore, higher share of profit from associated companies and fair value gains on investment properties.

Attributable fair value gains and other gains totalled $9.2 million against $21.5 million losses in the previous corresponding quarter caused substantially by the increase in valuation of Novena Square and United Square.

Group revenue rose 10% to $399.1 million in the second quarter. Property development, which accounted for 55% of Group revenue, posted a 19% increase to $221.2 million. Besides Principal Garden, other projects that contributed to group revenue included Botanique at Bartley and Riverbank @ Fernvale.

Revenue from investment properties edged up 2% to $56.4 million and included rental from 110 High Holborn in midtown London, which UOL acquired in June 2016. The group’s hospitality business including management services was mostly flat with the topline at $105.6 million against $106.2 million in the previous corresponding period.

The share of profit from associated companies excluding fair value losses rose 27% to $42 million, mainly from associated company United Industrial Corporation (UIC) which registered higher profit recognition from its development properties.

Share of profit from joint venture companies excluding fair value gains, however, fell 34% to $3.3 million with the absence of contribution from Thomson Three which was completed in May 2016.

Liam Wee Sin, UOL Deputy Group Chief Executive Officer, says: “The recent acquisition of a hotel in Melbourne, which is branded as Pan Pacific Melbourne will further strengthen our presence in Australia and our recurring income. The retail sector is still the most challenging due to the increasing pace and magnitude of disruption by ecommerce and other new platforms.”

Shares in UOL closed at $8.06 on Friday.