United Overseas Land

[winston]

not vested

May 27, 2013

We see value in UOL’s strategic holdings which have deep underlying value, large commercial portfolio and residential
development activities, which provides strong recurrent and non-recurrent income.

The successful delisting of Pan Pacific Hotels Group will enable the group to have greater flexibility over its hotel operations.

At the same time, we see significant value in UOL through its 43.4% stake in UIC, which in turns owns c80% of Singapore Land, one of the largest office landlords and hotel owners in Singapore.

Should this portfolio be divested into a REIT in the future, this could unlock tremendous value for shareholders.

Source: DBS

[winston]

UOL GROUP - "PRESENTATION FOR INVESTOR MEETING IN SINGAPORE TO BE HELD ON 13 MAY 2013"

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

not vested

UOL Group: BUY; S$6.36; UOL SP
Steady as she goes
Price Target : 12-Month S$ 7.86

• Results in line, boosted by higher gross margins, led by hotel operations
• New residential launches from FY14; One KM and recent Myanmar hotel JV to boost recurrent income in medium term
• Maintain BUY and S$7.86 TP


Highlights

Boosted by higher hotel contributions. UOL’s 3Q13 results were largely in line with expectations. Despite a 6% y-o-y drop in revenue, bottomline was 6% higher over the previous period. This was achieved due to a 6.5ppt improvement in gross margins to 49.8% led by a recovery in hotel operations.

Apart from the opening of Parkroyal Pickering and Pan Pacific Serviced Suites Beach Rd from 2Q13, Parkroyal Darling Harbor and Parkroyal Yangon also performed better. As such, hotel revenue jumped by a healthy 25%. Other segments such as rental income and hotel management fees also expanded y-o-y and helped offset the dip in residential revenue.

Higher associate contributions expected. Associate contributions continued to benefit from progressive billings at Archipelago as well as Katong Regency. Thomson Three is 74% taken up and should boost development income going forward.


Our View

New launches from early FY14. Looking ahead, the Group would continue to drive all business segments. Plans are afoot to launch St Patricks Garden enbloc site and Sengkang West Way in 1Q14 as well as its residential project in Jalan Conlay, KL.

Management expects residential prices to soften and this presents opportunities for further landbanking at reasonable pricing, which should help preserve development margins.

More recurrent income stream. Meanwhile, pre-leasing of One KM is underway and the mall is currently 70% taken up with committed rental rate in the low teens. This will boost recurrent income stream when completed.

The Group has also recently entered into a JV to develop another hotel in Myanmar, which is expected to complete by 2016/17. With gearing ratio of 31%, the Group has deep capacity to invest in new projects to drive future income visibility.


Recommendation

Retain Buy call. We continue to like UOL for its diversified income stream and maintain our Buy call with a TP of S$7.86, pegged at a 20% discount to RNAV.

Source: DBS

[winston]

not vested

UOL Group: Stable set of 1Q16 results

UOL’s 1Q16 revenues increased 39% YoY to S$330.1m mostly due to a firm contribution from the group’s property development business (up 112% YoY to S$164.3m) as we saw higher progressive recognition from previously launched projects.

And also solid contributions across the group’s investment properties, hotel and management services segments.

That said, we saw the group’s share of profits from associates and JVs dip 12% YoY to S$34.1m over the quarter given the absence of contribution from the Archipelago development - a JV with United Industrial Corporation Ltd - which attained TOP in Sep 2015.

As a result, 1Q16 PATMI rose 4% YoY to S$77.1m; this constitutes 18% of our full year forecast and we judge this to be broadly in line with expectations.

Maintain BUY with an unchanged fair value estimate of S$7.43.

Source: OCBC

[winston]

UOL gets a writedown. What should investors do?

By Gwyneth Yeo

SINGAPORE (Aug 5): Market watchers are staying positive on UOL Group, despite the unexpected $19.6 million fair value loss from the revaluation of its investment properties in 2Q16.

UBS, DBS and CIMB are maintaining their “buy” recommendations for the stock, with target prices of $7.55, $7.20, and $7.96 respectively. Morgan Stanley is maintaining its “equal weight” rating.

To recap, UOL’s 1H16 earnings declined 36% to $145.9 million. This came on the back of a $19.6 million fair value loss, and $7.1 million in net acquisition cost.

According to UBS analyst Michael Lim, the net fair value losses “came as a surprise, as peers are still reporting positive to flat revaluations”.

UOL had written down most of its retail and office valuations, with the exception of OneKM, where spot rents are weaker though cap rates remained unchanged.

Morgan Stanley’s Wilson Ng on the other hand pointed out that UOL's portfolio of offices and malls had recorded positive rental reversions during the period, particularly at Velocity and Novena Square. “82% of leases due this year have already been renewed, limiting the scope for any negative surprises,” says Ng in a note on Thursday.

In the residential segment, revenue rose 14% from the progressive billings and higher sales rate at ongoing projects Botanique at Bartley and Riverbank at Fernvale, and the maiden contribution from Principal Garden.

On top of that, Seventy St Patrick’s is expected to be completed in 3QFY2016 while Riverbank @ Fernvale will be completed by 1QFY2017. “To extend further earnings visibility, UOL is planning to launch its Park Eleven project in Changning in 3Q and the 505-unit Clementi Ave 1 project in 1Q17,” says CIMB’s Lock Mun Yee.

However, performance of the group’s hotel segment was more mixed. Hotel revenue rose 3%, on the back of better results in Australia, but revenue per available room for its Singapore hotels fell 1–2%.

“Management commented that land bid prices were elevated due to intense competition in recent biddings. As domestic growth slows, we think overseas acquisitions in the target markets of the UK, China and Australia could gather pace,” says Lim.

Even so, DBS analyst Rachel Tan points out that shares of UOL are currently trading at 13 times FY2017 forecast earnings, which is “below the lower end of its historical range, making it one of the cheapest large cap landlords in Singapore”.

Shares in UOL closed 0.2% loer at $5.83.

Source: The Edge

http://smr.theedgemarkets.com/article/u ... 9-87358173

[winston]

not vested

Maybank has high hopes for this developer it is starting coverage on

By Jude Chan

SINGAPORE (Dec 6): Maybank Kim Eng is initiating coverage on property developer UOL Group with a “buy” and a target price of $7.39.

According to Maybank, this “conservative” target price implies a 24% discount to UOL’s revalued net asset valuation (RNAV) of $9.70. The target price translates into 0.69x 2017E P/BV, below UOL’s 10-year average of 0.76x.

“We expect UOL to outperform its developer peers as we believe a risk-averse market will favour those with conservative trading portfolios and strong recurring income,” says Maybank analyst Derrick Heng in a Monday report.

The fifth-largest property developer listed on Singapore Exchange (SGX), UOL has a diversified property exposure.

On top of residential projects, it is a major office landlord with a 5% market share. UOL also owns a chain of hotels and serviced apartments under the Pan Pacific and Parkroyal brands.

While it was one of the biggest buyers of land in the en-bloc market before the global financial crisis, Maybank says UOL has managed to de-risk its portfolio by selling all its redeveloped homes.

“Unlike several of its peers that are struggling to offload their unsold stock to avoid hefty Qualifying Certificate (QC) penalties, it is not at risk,” says Heng. “Good execution has also resulted in high presales for projects currently under development.”

Maybank recommends switching from City Developments to UOL for the Singapore property sector.

The research house has a “hold” rating on CityDev with a target price of $8.90.

UOL Group closed 19 cents higher at $6.15, while City Developments closed 6 cents higher at $8.46.

Source: The Edge

http://smr.theedgemarkets.com/article/m ... up-content

[behappyalways]

UOL full year earnings fall 27% to $287 mil on fair value, other losses
http://www.theedgemarkets.com.sg/articl ... her-losses

[behappyalways]

UOL acquires Hilton Melbourne South Wharf for $246 mil
http://www.theedgemarkets.com.sg/articl ... rf-246-mil

[behappyalways]

UOL posts 4% rise in earnings to $80.3 mil
http://www.theedgemarkets.com.sg/uol-po ... gs-803-mil

[behappyalways]

UOL a step closer to achieving ‘statutory control’ of UIC in share swap deal with Haw Par
http://www.theedgemarkets.com.sg/uol-st ... al-haw-par