SINGAPORE : Property group UOL posted a 13 percent decline in third quarter net profit to S$87.8 million compared to a year ago.
However group revenue for the three months ended September 30 fell 33 percent to S$277 million on-year.
In its filing to the stock exchange on Thursday, the company attributed the decline to the drop in property development revenue from S$267.4 million to S$133.7 million following the completion of some of the group's projects in 2011 and 2012.
Meanwhile, revenue for property investments rose one percent to S$41.7 million, while revenue for hotel ownership and operations decreased one percent to S$91.1million.
The temporary closure of Pan Pacific Singapore for major renovations in April to September 2012 also caused revenue for hotel management services to drop 26 percent to $3.9 million.
The share of profit from associated companies in the third quarter declined 31 percent to S$25.4 million from S$36.8 million due to a lower share of profit from Marina Centre Holdings and United Industrial Corporation (UIC).
Looking ahead, UOL remains positive on the hotel sector in Singapore.
Group CEO, Gwee Lian Kheng says "the timing is just right for us to open PARKROYAL on Pickering."
Mr Gwee adds that the adjacent office tower has been fully leased and handed over to the tenant.
But with the economic slowdown some pressure could also be felt in office rents.
UOL expects the retail sector to remain stable.
As for the residential sector, UOL are expecting price rises to be moderate, given the recent restrictions in home loan tenures and more supply coming on stream.
On Thursday, UOL shares ended 10 cents lower at S$5.59 on the Singapore Exchange.