UOA Development 4Q earnings multiply threefold, proposes 15 sen dividend

KUALA LUMPUR (Feb 22): UOA Development Bhd’s net profit multiplied threefold to RM345.98 million or 21.21 sen per share for the fourth quarter ended Dec 31, 2016 (4QFY2016), from RM111.07 million or 7.31 sen per share in 4QFY2015, aided by a revaluation surplus of RM338.26 million.

However, revenue for the quarter dropped 47% to RM270.64 million, from RM511.6 million a year earlier.

The group proposed a first and final single tier dividend of 15 sen per share for the year ended Dec 31, 2016 (FY2016).

“The group’s revenue and profit attributable to the company for the quarter under review were mainly derived from the progressive recognition of the group’s on-going development projects, namely South View Serviced Apartments, Desa Green Serviced Apartments, Southbank Residence, Sentul Village, United Point Residence and Vertical Business Suites,” said the property developer in a filing with the stock exchange.

UOA Development also benefitted from a surplus of RM338.26 million, following the revaluation of several of its investment properties, including Vertical Corporate Tower A and The Sphere at Bangsar South, as well as Camellia Serviced Apartments.

For the full-year period, cumulative net profit rose 62% to RM676.73 million, from RM417.02 million in FY2015, while revenue fell 39% to RM996.19 million, from RM1.64 billion.

Going forward, UOA Development said it will continue to focus on its Greater Kuala Lumpur developments and will continue to be on the lookout for land acquisition opportunities.

Meanwhile, the group secured approximately RM1.42 billion in new property sales for the quarter ended Dec 31, 2016. In total, it has unbilled sales of RM1.46 billion as at Dec 31, 2016.

UOA Development’s share price rose 6 sen or 2.41% to RM2.55 in mid-afternoon trade today, giving it a market capitalisation of RM4.08 billion. — theedgemarkets.com

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