UOL H2 profit rises 21% to S$276.2 million; special dividend proposed

[SINGAPORE] Property player UOL on Thursday (Feb 26) posted a 21 per cent rise in net profit to S$276.2 million for the six months ended Dec 31, 2025, from S$227.8 million for the corresponding period a year earlier.

Revenue for H2 FY2025 rose 11 per cent year on year to S$1.68 billion from S$1.52 billion. This was driven by higher contributions from the group’s residential projects and commercial property investments.

Earnings per share for H2 FY2025 stood at S$0.3268, compared with S$0.2696 for the same period a year earlier.

The board proposed a first and final dividend of S$0.18 a share and a special dividend of S$0.07 a share for FY2025. This brings the total dividend for the year to S$0.25 a share, up from the total dividend of S$0.18 a share for FY2024.

The payment date for the latest dividends will be announced later, UOL said.

The group noted that the Singapore residential market is “expected to remain stable, supported by low unemployment, strong household balance sheets and a lower interest rate environment”. It expects sales momentum to be “healthy”, while price growth is “likely to moderate”.

Revenue from property development rose by 16 per cent or S$105.4 million in H2 FY2025.

This was due mainly to “new revenue recognition from Upperhouse at Orchard Boulevard, as well as higher progressive revenue recognition from Watten House, Meyer Blue and Pinetree Hill”, UOL said.

It added that the gains were “offset partially by the absence of contribution” from The Watergardens at Canberra, which obtained its temporary occupation permit in late 2024.

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Revenue from property investments rose 15 per cent year on year to S$325.6 million. This was mainly due to new contributions from the group’s interest in 388 George Street in Sydney and Varley Park in Brighton, as well as “better performance” from Singapore Land Tower and West Mall following the completion of enhancement works.

Revenue from hotel operations remained stable at S$440.7 million, compared with S$440.9 million in the corresponding period a year earlier.

Full-year performance

For the full year, UOL’s net profit was up 34 per cent at S$481.7 million from S$358.2 million for FY2024. Revenue grew 16 per cent year on year to S$3.2 billion from S$2.8 billion.

The group’s net gearing ratio improved to 0.2 as at Dec 31, 2025, from 0.23 a year earlier. Its net asset value per share increased to S$13.92 from S$13.65 over the same period.

UOL announced in January that a joint venture between itself and CapitaLand was awarded the residential component of an integrated site at Hougang Central for S$1.5 billion.

Separately, the group entered into an agreement to sell Pan Pacific Tianjin for about S$43.6 million.

UOL said it is monitoring “potential headwinds from rising geopolitical uncertainties”. It expects the office sector to “remain resilient, supported by tight supply, especially in the Central Business District”, as well as Singapore’s position as a safe haven.

“The Singapore residential sector remained healthy, reflected in our robust sales, and this adds to our income visibility for the next two years,” said UOL chief executive officer Liam Wee Sin. “The acquisitions of Thomson View, Dorset Road and Hougang Central sites give us a quality pipeline of replenishment sites.”

The domestic retail and hospitality sectors are also expected to remain stable. UOL noted that while tourism demand remains supportive, the operating environment for hotels is “challenging” due to manpower constraints and elevated operating costs.

Shares of UOL closed down 6.1 per cent or S$0.69 to S$10.68 on Thursday, before the news.