UOL H1 net profit rises 58% to S$205.5 million
[SINGAPORE] Property developer UOL Group posted a 58 per cent increase in net profit to S$205.5 million for the first half of 2025.
The increase was due to strong performance from property development and property investments, and other gains from the disposal of Parkroyal Yangon, UOL said in a bourse filing on Wednesday (Aug 13).
Earnings per share for H1 2025 stood at S$0.2433, up from S$0.1543 in H1 2024.
Revenue rose 22 per cent to S$1.55 billion, from S$1.27 billion in the year-ago period, mainly due to higher earnings across most business segments.
UOL group chief executive Liam Wee Sin said: “Our strong results reflect the resilience of our diversified portfolio and the continued confidence in Singapore as a stable and trusted market, even in times of heightened uncertainty.”
Revenue from property development rose 40 per cent to S$731.7 million on higher progressive revenue recognition from new launch projects Pinetree Hill, Watten House and Meyer Blue.
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The CEO highlighted how two recent projects launched by UOL – Parktown Residence and Upperhouse at Orchard Boulevard – performed well.
To date, the group has sold 64 per cent or 192 out of 301 units in Upperhouse at Orchard Boulevard and 92 per cent or 1,092 out of 1,193 units in Parktown Residence.
Yvonne Tan, UOL’s chief corporate and development officer, said during the earnings briefing that the firm take-up at the recent Upperhouse launch reflects “aspirations to upgrade remain deep-rooted, and genuine demand continues to anchor the strong sales”.
“The recent revision to the seller’s stamp duty (SSD) had minimal impact on buying behaviour,” she added.
Under the revised rules, the holding period for private residential properties was extended from three to four years. SSD rates now range from 16 per cent in the first year to 4 per cent in the fourth year, with no SSD payable after that.
Liam said: “We see demand gravitating to the Core Central Region (CCR) market; in a sense, flight to quality for buyers due to the price gap compression between CCR and Rest of Central Region (RCR).”
Given the robust demand, UOL will preview Skye at Holland in September 2025.
The project will comprise two 40-storey condominium towers, accommodating 680 units. It sits on a 12,388 square metre plot of land that was awarded to a UOL-led consortium last May for S$805.4 million, or S$1,285 per square foot per plot ratio.
Meanwhile, UOL expects to launch the project on the Thomson View plot in H2 2026, said Liam. The development is a joint venture between UOL and CapitaLand, and it is expected to yield some 1,240 residential units.
The Thomson View plot was acquired at S$810 million, after the High Court of Singapore granted the sale order for the collective acquisition of Thomson View condo in July 2025.
Amid rising land costs, Liam noted that the group is “very selective” in its land bids, noting that breakeven hinges on land prices, which are trending upward alongside selling prices.
No dividend has been declared for H1, unchanged from the year-ago period.
Property investments recorded a 12 per cent increase in revenue to S$303.6 million due mainly to revenue from the newly acquired stake in 388 George Street in Sydney in January 2025, stronger performance by Singapore Land Tower which had substantially completed its asset enhancement initiative works by December 2024, and new contributions from Odeon 333 in Singapore which commenced operations in July 2024.
UOL also recorded positive rental reversion for both its office and retail portfolios. It expects the office sector to remain stable, driven by the continued flight to quality and underpinned by limited new supply, especially in the Central Business District.
Liam added that the group has made further progress in its strategic development incentive (SDI) for Marina Square, and will reveal details at a later stage. In April this year, a DBS Research report suggested it was time for UOL and Singapore Land Group to unlock value from the asset.
This can be done through redeveloping the mall into a future-proof, mixed-use integrated development, by tapping into government incentive schemes focused on rejuvenating the city centre, the report noted.
Marina Square sits on land with a 99-year leasehold tenure that started on Sep 9, 1980. The mixed-used development measures 92,197 sq m, and has a total gross floor area of 315,046 sq m.
In 2023, SingLand obtained provisional permission from the authorities for the partial redevelopment of Marina Square. Liam said: “It’s a long journey… We are now gunning for, hopefully, a written permission to be obtained… When we get the approval, it will be announced.”
Occupancy for hotels in Singapore owned by UOL stood at 77 per cent in H1, a slight increase from 76 per cent a year ago. However, marketing expenses rose 29 per cent to S$72.6 million due to higher selling expenses for residential projects and higher marketing and distribution costs for the hospitality segment.
Liam said he expects the Singapore hospitality sector to remain challenging given the global economic situation.
He said: “However, the pipeline of meetings, incentives, conferences, and exhibitions (Mice) events may drive corporate and leisure demand for the second half of the year.”
“In a world adjusting to a new trade order, we will continue to be disciplined in our approach to portfolio management, project execution and capital deployment. We will adapt to changing market conditions and navigate through these uncertain times.”
UOL’s net gearing ratio rose to 0.25 as at Jun 30, 2025, from 0.23 as at Dec 31, 2024, while interest cover rose to seven times its net interest cost from six times last December.
The group’s net asset value per share decreased slightly to S$13.59, from S$13.65 in H2 2024 due to lower hedging reserves, foreign currency translation reserves and payment of dividends to shareholders.
UOL ended Wednesday at S$7.16, up S$0.11 or 1.6 per cent, before the announcement.