DEVELOPER United Industrial Corp (UIC) reported an 85 per cent year-on-year slump in net profit for the full year ended Dec 31, 2020 to S$90.23 million.

The group was weighed down by a fair-value loss on investment properties of S$125.8 million in FY2020, compared to a fair-value gain of S$148.5 million in FY2019. At the same time, its results in FY19 were boosted by a one-off gain of S$210.3 million from the acquisition of additional interest in Aquamarina Hotel.

Stripping out fair value and other gains/losses, the group recorded a net profit of S$217.7 million, 12 per cent lower year on year due to the financial stimulus packages from the government amid the ongoing pandemic and the cost-saving measures rolled out by the group.

Revenue was 15 per cent lower at S$671.13 million, as its property business and hotel operations were impacted by the pandemic. This was partly offset by an increase in revenue from its technology operations, which benefited from a surge in orders from key customers such as government agencies and financial institutions during the pandemic.

Earnings per share worked out to 6.3 cents (including fair-value losses / gains on investment properties), versus 42.2 cents per share in FY19.

In an update on its outlook, UIC said that it is cautiously optimistic about the office and retail sectors as the easing of some restrictions under Phase 3 have allowed for people to gradually return to offices and shops.

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It added: "However, demand for office and retail space may face pressure from the paradigm shift towards flexible working arrangements and on-line shopping, and as businesses look at implementing cost-saving measures to keep business costs in check."

UIC expects the hospitality sector in Singapore to experience "significant revenue challenges" this year owing to the absence of a large domestic market, and as travel curbs and lockdowns continue in certain countries.

Meanwhile, in the property sector, it expects residential sales to remain resilient, thanks to low interest rates and fewer new residential launches this year - but this is so only as long as no further cooling measures are introduced.

UIC declared a dividend of 3.5 Singapore cents per share, down from 4 cents for the corresponding period a year ago.

The counter closed at S$2.28 on Tuesday, three cents or 1.3 per cent lower.