UOL Group reported a 3% y-o-y decline in net attributable profit for its half-year ended June 30 (1HFY2024) to $130.4 million due mainly to attributable fair value losses of $12.2 million compared with fair value and other gains of $3.3 million for the same period last year.
Pre-tax profit before fair value and other losses and gains totalled $245.3 million, up 7% y-o-y due mainly to higher earnings from property investments, hotel operations and dividend income. Revenue fell 7% y-o-y to $1.27 billion with lower contributions from property development. This was partly offset by higher revenue from hotel operations and property investments. Revenue from property development decreased 23% to $521.8 million due mainly to lower progressive revenue recognition from Clavon and the absence of contribution from Avenue South Residence which had obtained temporary occupation permit in July 2023 in Singapore. The decline was partially offset by higher progressive revenue recognition from ongoing projects Watten House and Pinetree Hill in Singapore.
Property investments recorded 8% y-o-y increase in revenue to $271.3 million owing to better performance by Singapore commercial properties and Pan Pacific Serviced Suites Kuala Lumpur, as well as new contribution from PARKROYAL Serviced Suites Jakarta which opened in January 2024. Revenue from hotel operations rose $36.0 million, or 11% y-o-y, to $377.6 million in 1H2024 following the opening of Pan Pacific Orchard in June 2023 and better performance by Pan Pacific Singapore, which had completed renovations in July 2023. This was partly offset by the sale of PARKROYAL on Kitchener Road in October last year.
The Group’s net gearing ratio rose to 0.27 as at June 30 from 0.24 as at December 31, 2023 owing to borrowings taken to fund acquisitions of new residential sites, partly offset by repayment of loans from residential sales proceeds.
