2005 PERFORMANCE AND DIVIDEND Gross rental income from the Group’s commercial properties declined by $12.1 million (7%) to $150 million as office lease renewals in the first half of the year were made at rental rates which were, on average, lower than the earlier contracted rents of expiring leases. Coupled with the divestment of the detergent and printing businesses in 2004, the Group’s overall revenue was reduced by $19.8 million (7%) to $276.9 million.
During the year, the Group realised a gain of $12.4 million from the divestment of its investment properties, Eau Claire Place II in Calgary, Canada, and Atrium Court in Glasgow, Scotland.
Net profit from the Group’s operations declined by $9.8 million (11%) to $83.7 million in the absence of a $12.7 million gain on divestment of the travel and detergent businesses in 2004.
After four straight years of decline, the values of the Group’s investment properties increased in 2005. The revaluation surplus of $117.4 million attributable to the Group, based on the annual year-end revaluation, was credited to the income statement, resulting in an overall net profit of $201.1 million (2004 : $31.8 million).
The Board recommends a first and final dividend of 2 cents (2004: 1.5 cents) per share less Singapore Income Tax at 20% (2004: 20%) amounting to $22 million (2004: $16.5 million) for the financial year ended 31 December 2005.
CORPORATE DEVELOPMENTS New Residential Focus Having established itself as one of the largest commercial landlords in Singapore, the Group stepped up its efforts in residential development.
In line with the Group’s new direction, we have three major freehold residential projects in the pipeline. The first is a 246,740 square feet freehold site formerly known as “Maryland Park” in Katong, considered the largest collective sale site in recent years, which United Industrial Corporation Limited (”UIC” or the “Company”) acquired through a joint venture with Singapore Land Limited and United Overseas Land Limited. This site will be redeveloped into a 562-unit condominium, “One Amber”, to be launched in the second quarter of 2006. The Group has a 60% interest in this project.
The second freehold residential project comprises the former “Bo Bo Tan Gardens” and “Bo Bo Tan Mansion” in Tiong Bahru, just outside the Central Business District. The 66,000 square feet site will be redeveloped into a 160-unit residential development. The Group has a 40% interest in this project.
The third freehold project is a 127,200 square feet site at St Patrick’s Road in a popular eastern residential enclave. The proposed residential development will comprise 138 units.
In addition to building up its residential landbank, the Group also stepped up the sales and marketing of its prime freehold residential developments. As a result of these efforts, the last 10 units of Stevens Loft, and 26
- United Industrial Corporation Limited summary financial report 2005