The following are top SGX-listed companies renowned for generating robust free cash flows (FCF) and maintaining strong balance sheets:
​ 1. Singapore Exchange Ltd (SGX: S68)

• The Business: The sole approved financial exchange operator in Singapore.
• FCF & Financials: FCF nearly doubled from S$392.4 million in FY2023 to S$773.6 million by FY2025, buoyed by its resilient fee structures and lack of capital-intensive overhead.

 

2. Sheng Siong Group Ltd (SGX: OV8)

• The Business: One of Singapore' s largest supermarket chains with over 90 outlets.
• FCF & Financials: Continues to punch above its weight by generating S$215.8 million in FCF. The company maintains a " war chest" of cash with zero bank debt, enabling consistent dividend payouts.

 

3. UOL Group Limited (SGX: U14)

• The Business: A leading real estate developer and hospitality investor.
• FCF & Financials: Has seen its FCF surge to around S$1.2 billion, representing a robust 86% conversion rate from its operating income, allowing the company to aggressively pay down debt and multiply dividends.

 

4. HRnetGroup Limited (SGX: CHZ)

• The Business: A premier recruitment and staffing specialist operating across Asia.
• FCF & Financials: Maintains a completely debt-free balance sheet with over S$260 million in cash reserves. It consistently converts net income into FCF, supporting a trailing dividend yield of over 5.8%. 

 

5. Venture Corporation Limited (SGX: V03)

• The Business: A global provider of technology solutions and electronics manufacturing services.
• FCF & Financials: Backed by an exceptionally liquid balance sheet featuring over S$1.28 billion in net cash, providing a resilient cushion for its annual dividend distributions

UOL&rsquo s H2 net profit rises 21% while CDL&rsquo s was up over four times at S$538.5 million

[SINGAPORE] The counters of property players   UOL   : U14 +5.62% and   City Developments Ltd (CDL)   : C09 +4.91% saw some positive movement at market open, on the back of their financial results announced on Thursday (Feb 26) and Friday.

 

Shares of UOL rose 6.3 per cent or S$0.67 to S$11.35 while CDL was up 4.4 per cent or S$0.41 at S$9.77.

 

UOL posted a 21 per cent rise in net profit to S$276.2 million for the six months ended Dec 31, 2025, from S$227.8 million in the corresponding period a year earlier.

 

 

Through strong recurring income from its residential segment &ldquo very high&rdquo positive reversion for its commercial assets, especially in Singapore and a stronger hospitality portfolio, UOL recorded revenue of S$1.7 billion in H2, 11 per cent higher than S$1.5 billion in the year-ago period.

 

Earnings per share (EPS) for H2 FY2025 stood at S$0.3268, compared with S$0.2696 for the same period a year earlier.

 

As for CDL, its second-half earnings rose over four times or 374.3 per cent to S$538.5 million, from S$113.5 million in the previous corresponding period.

 

This translates to EPS of S$0.598, against an EPS of S$0.121 in the year-ago period.

 

CDL said that all its business segments reported improvements for the six months ended December, and its revenue for H2 stood at S$1.9 billion, up 11.1 per cent on the year from S$1.7 billion.

UOL Group reported a 34% increase in FY2025 earnings to $481.7 million, driven by strong property development and investments. The company plans to pay a special dividend of 7 cents per share, in addition to a final dividend of 18 cents.

 

UOL Group has sold its hotel in Tianjin for RMB238 million, or around $43.4 million.

 

The sale, via its unit, Tianjin UOL Xiwang Real Estate Development, was made to one Jiang Yang.

 

The hotel, with 319 rooms, is at No. 1 Zhang Zi Zhong Road in the northern Chinese city.

 

UOL opened this property back in 2014.

 

Jiang has paid a deposit of RMB23.8 million and will pay the balance on or about April 1.

SINGAPORE &ndash Property stocks were among the gainers on the Straits Times Index (STI) last week.

 

UOL&rsquo s shares rose 7.7 per cent over the period, after a consortium comprising the company, CapitaLand Integrated Commercial Trust (CICT) and CapitaLand Development (CLD) won a $1.5 billion tender for the Hougang Central integrated residential and commercial site.

 

The stock closed on Jan 16 at $10.07, from the previous week&rsquo s close of $9.35.

 

CICT on Jan 14 said the move is a significant milestone as it reinforces the trust&rsquo s foothold in its core market of Singapore, while expanding its retail footprint into the north-east region.

 

Under the joint development, CICT will develop and own 100 per cent of the commercial component, while CLD and UOL, in a 50-50 joint venture, will develop the residential component for sale.

 

CICT, which is also an STI component stock, announced on Jan 14 that it is divesting Bukit Panjang Plaza for $428 million in cash.

 

The move is part of CICT&rsquo s broader portfolio reconstitution strategy, under which asset divestments may be considered to enable capital redeployment into potential growth opportunities, or other strategic purposes.

 

City Developments Limited (CDL) shares climbed 3.3 per cent last week as the developer announced previews for Newport Residences, a 246-unit freehold luxury project in Anson Road.

 

CDL group chief executive Sherman Kwek said the timing is ideal to introduce the rare freehold offering, citing strong and resilient demand for recent new launches in prime areas.

 

DBS Group Research analyst Tabitha Foo maintains a &ldquo buy&rdquo rating and $11.80 target price for CDL, seeing potential for further gains and viewing the stock as undervalued compared with peers. &ldquo We see CDL as a near-term tactical play with room for valuation catch-up,&rdquo she stated in her Jan 15 note.

 

The stock ended the week at $9.16 on Jan 16, from the previous week&rsquo s close of $8.87.

 

Meanwhile, a multi-week rally in Singapore&rsquo s banking stocks pushed the sector to fresh record highs, with DBS Bank climbing past $59 and OCBC Bank reaching as high as $20.54.

 

Shares of DBS rose 2.6 per cent last week to a record closing price of $59.12, while OCBC stock closed up 3.2 per cent to $20.44. UOB gained nearly 2 per cent to $36.74, below its all-time closing high of $38.67.

 

Analysts are split on the banks&rsquo outlook. Some say stable earnings and higher dividend hopes could keep the banks buoyant, while others said headroom for further valuation expansion may be limited.

 

Gold jumps, then retreats

Spot gold prices edged lower after hitting record highs earlier last week, as stronger United States economic data lifted the dollar and reduced demand for safe-haven assets.

 

Spot gold reached more than US$4,640 per ounce in the week before paring gains to close at approximately US$4,596 an ounce on Jan 16.

 

The precious metal has surged more than 60 per cent over the past year as investors sought shelter amid geopolitical tensions, attacks on the Federal Reserve and the prospect of more US interest rate cuts.

 

Earlier in the month, HSBC said gold prices could rise to around US$5,000 per ounce in the first half of 2026, although volatility is expected to stay high and pullbacks may occur more often.

 

Singapore-listed gold mining company CNMC Goldmine Holdings closed 13.7 per cent higher at $1.16, from the previous week&rsquo s close of $1.02.

 

SPDR Gold Shares, the world&rsquo s largest exchange-traded fund that tracks the price of gold, ended the week at US$421.29 from the previous week&rsquo s closing price of US$414.47.

 

Seatrium customer wins ruling, Coliwoo up on bullish calls

Seatrium shares gained 1.8 per cent to close the week at $2.24 as its customer Equinor received the green light from US judge Carl Nichols to resume work on the Empire Wind project, which involves a vessel built by Seatrium.

 

The court ruling provides a lift to rig builders amid a wave of US actions to halt offshore wind projects, which US President Donald Trump has criticised as unprofitable and damaging to the landscape as he pushes for greater use of fossil fuels.

 

Judge Nichols pushed back, warning that Equinor&rsquo s Empire Wind project would suffer &ldquo irreparable harm&rdquo from further delays while its legal fight over the US government&rsquo s stop-work order plays out in court.

 

Meanwhile, shares of Coliwoo rose 5.3 per cent to 59.5 cents after analysts initiated coverage on the co-living operator, citing tailwinds such as a growing number of international students and expatriates, as well as high home ownership costs for foreigners.

 

RHB analyst Vijay Natarajan noted that co-living is a niche and fast-growing segment in Singapore, driven by structural shifts such as the rising popularity of community living and hybrid work. RHB assigned Coliwoo a &ldquo buy&rdquo rating with a target price of 82 cents on Jan 15, representing a 41 per cent upside from its closing price of 58 cents on Jan 14.

 

CGS International initiated with an &ldquo add&rdquo rating and a price target of 74 cents on Jan 14, underpinned by strong earnings visibility and growth prospects.

 

Analysts Tan Jie Hui and Lim Siew Khee noted that Coliwoo captures Singapore&rsquo s undersupply of affordable central rentals for non-residents, though downside risks include softer occupancy and rental rates.

 

The Assembly Place, Toku set to list

Coliwoo&rsquo s peer The Assembly Place is seeking to raise $18.3 million through a Catalist initial public offering (IPO).

 

The offer &ndash opening from Jan 15 and closing on Jan 21 &ndash of 50.3 million shares at 23 cents a share comprises 48.3 million placement shares and two million public offer shares.

 

Cornerstone investors, including Apricot Capital and Maybank Securities, will subscribe for around 29.5 million shares on behalf of certain high-net-worth clients.

 

The Assembly Place said it would use net proceeds of around $9.7 million to expand its portfolio and pursue investment opportunities, and another $1 million would be channelled to its working capital.

 

The firm would also focus on enhancing its digital technologies, developed in-house, to improve its services and efficiency.

 

Cloud communications and customer experience platform Toku announced on Jan 14 that it plans to raise $16.25 million through an IPO, offering 65 million shares at 25 cents each.

 

The offer opened on Jan  14 and runs until noon on Jan 20.

 

Toku provides enterprise customers with a platform to seamlessly orchestrate all conversations across voice, chat, e-mail and other digital channels, while navigating complex regulatory, linguistic and infrastructure requirements.

 

Toku&rsquo s non-independent non-executive chairman Lim Hwee Hua said: &ldquo With data sovereignty and responsible AI (artificial intelligence) becoming strategic priorities across both public and private sectors, Toku is well-positioned to meet the region&rsquo s growing demand for trusted, compliant citizen and customer engagement.&rdquo

 

Other market movers

Shares of Lum Chang Holdings rose 20 per cent over the week to 63 cents after the construction firm on Jan 15 guided for an improved net profit for the six months ended Dec 31.

 

The expected improvement is largely attributable to stronger operating performance of the group&rsquo s restoration and interior fit-out business.

 

Construction and property developer Low Keng Huat (LKH) jumped 7.5 per cent to close at 78.5 cents on Jan 16.

 

Consistent Record, a special purpose vehicle controlled by LKH managing director Marco Low and his family, raised its voluntary conditional offer to take the property developer private to 78 cents a share, up from 72 cents previously.

 

Sembcorp Industries shares closed 2.2 per cent higher over the week to $6.12, from Jan 9&rsquo s close of $5.99.

 

Sembcorp Industries said in a Jan 15 exchange filing that it will seek shareholder approval for its proposed acquisition of Alinta Energy.

 

An extraordinary general meeting has been scheduled for Jan 30 to vote on the purchase of Australia&rsquo s fourth-largest utilities provider from Hong Kong-based Chow Tai Fook Enterprises.

 

What to look out for this week

Shares of Toku are set to list on the Catalist board on Jan 22, while The Assembly Place is expected to begin trading on Jan 23.

 

Singapore&rsquo s December consumer price index release on Jan 23 will be under the spotlight, with attention on both headline and core inflation trends.

 

News relating to the upcoming Singapore Budget 2026 statement on Feb 12 will be in focus, while the Monetary Authority of Singapore is expected to announce a date for its January monetary policy statement, which should be no later than Jan 30, according to UOB.

 

Attention will also be on Mr Trump&rsquo s appearance at Davos 2026, with markets listening closely for signals on trade, tariffs, foreign policy and global economic priorities that could shape investor sentiment.

 

 

A consortium comprising UOL Group has been awarded the tender for the integrated residential and commercial site at Hougang at a tender price of $1.5 billion.

 

The consortium, which includes the company&rsquo s JV company Horizon Residential (Residential SPV), and a wholly-owned sub-trust of CICT, submitted the bid last Dec.

 

The site is a leasehold of 99 years, with a land area of 46,899.4 square metres. It is a mixed use development comprising a residential and commercial development integrated with an MRT station, a bus interchange and town plaza.

 

Residential SPV is a 50-50 JV company between Secure Venture Development and CL Emerald, an indirect wholly-owned subsidiary of CapitaLand Group. Secure Venture Development is a 20-60-20 JV company between Singland Residential Develoipment, a wholly-owned subsidiary of the company, and UOL Venture Investments, a wholly-owned subsidiary of UOL Group, and Kheng Leong Company (Private) Limited.

 

The effective shareholding proportion in Residential SPV is SingLand at 10%, UOL at 30%, KLC at 10% and CapitaLand Development at 50%. Residential SPV will develop at its own cost the residential component of the site for sale, while CICT Sub-Trust will develop at its own cost and retain full ownership of the commercial component of the site.

 

The award of this tender marks a significant milestone for CICT as it reinforces its foothold in its core market of Singapore, while expanding its retail footprint into Singapore&rsquo s northeast region, the group notes. CICT adds that the project draws on CapitaLand Group&rsquo s established expertise in delivering large-scale integrated mixed-use developments, supported by CapitaLand Investment&rsquo s " best-in-class" commercial management capabilities that have consistently driven strong operational performance.

 

The acquisition and development of the site will be financed principally from bank borrowings and proportionate shareholders&rsquo loans.

 

The consortium has paid or caused to be paid a tender deposit of about 5% of the tender price to HDB. A sum equivalent to 25% of the tender price will be paid within 28 days of the award of the tender, and the balance is payable within 90 days of the award of the tender.

Its offer works out to S$1,338 psf ppr, just 1% above the second-highest bid URA tender fetches total of nine bids

 

[SINGAPORE] A cocktail of strong sales at recent private residential project launches and an attractively located city-fringe site resulted in an impressive nine bids received for a 99-year leasehold plot near Farrer Park MRT station.

 

This was a stronger turnout than the three to seven bids for the Dorset Road plot forecast by analysts polled by The Business Times earlier this week.

 

That said, the top offer of S$524.3 million, or S$1,338 per square foot per plot ratio (psf ppr) was towards the upper end of the S$1,000 to S$1,400 psf ppr forecast by the analysts.

 

A consortium comprising UOL Group, Singapore Land Group and Kheng Leong placed the highest bid at Thursday&rsquo s (Oct 9) state tender closing.

 

The consortium&rsquo s proposed scheme envisages two 27-storey towers with 428 residential units. UOL chief investment and asset officer Shirley Ng noted the site&rsquo s strong locational attributes, including it being within a 1-km radius of St Joseph&rsquo s Institution Junior and Hong Wen School.

 

Wong Siew Ying, head of research and content at PropNex, noted that the participation in the Dorset Road tender made it one of the most keenly contested sites among the government land sale (GLS) tender closings so far this year, matching the nine bids received for a Dunearn Road plot in June.

 

The nine bids for the Dorset Road site is also similar to the 10 bids garnered in 2021 for the nearby Northumberland Road site, which is directly connected to Farrer Park MRT station. Zoned &ldquo residential with commercial at first storey&rdquo , the site was sold to a tie-up between City Developments and MCL Land for S$1,129 psf ppr. It has been developed into an integrated project that includes the 407-unit residential component Piccadilly Grand and a ground-floor retail podium, Piccadilly Galleria.

 

Piccadilly Grand saw robust take-up, moving 315 units or 77 per cent of total units at an average price of S$2,150 psf over its launch weekend in May 2022. It was fully sold by the end of 2023.

 

Knight Frank Singapore head of research Leonard Tay said that Thursday&rsquo s tender &ldquo reflects robust interest by developers who are generally still confident in the strong homebuyer momentum, married with the strong site-specific attributes of a city-fringe location that is flush with modern amenities and historical culture, despite economic uncertainty and elevated development costs&rdquo .

 

Based on the UOL-led consortium&rsquo s land price, market watchers expect a new condominium on the site to be launched at an average price of S$2,650 to S$2,800 psf, or even higher.

 

The consortium&rsquo s top bid on Thursday was just 1 per cent above the second-highest bid of S$1,324 psf ppr from a consortium comprising ABR Holdings, LWH Holdings, Macly Capital, Roxy-Pacific Holdings and Wee Hur Holdings.

 

The third-highest bid, from Hoi Hup Realty, translated to nearly S$1,315 psf ppr. Kingsford Group offered S$1,310 psf ppr for the site. A tie-up between Sim Lian Land and Sim Lian Development bid S$1,251.49 psf ppr. This was followed by a S$1,212.44 psf ppr bid from a unit of China Overseas Land & Investment.

 

Timely land replenishment

Tricia Song, head of research for South-east Asia at CBRE, said: &ldquo The fact that the top six bids are within a 10 per cent range shows some consensus on the site.&rdquo

 

Said Tay of Knight Frank: &ldquo With most Singapore residents remaining employed, and given that strong domestic savings provide households with financial flexibility, sustained demand for new products in well-located neighbourhoods with amenities currently persists, in turn incentivising developers to continue acquiring land.&rdquo

 

Huttons Asia chief executive officer Mark Yip said: &ldquo The strong sales at recent project launches has added urgency for developers to replenish their land bank.&rdquo

 

In a similar vein, UOL&rsquo s Ng noted: &ldquo If awarded, this (Dorset Road) site will be a very timely replenishment for our residential stock.&rdquo

 

Also participating at Thursday&rsquo s tender was a consortium that included CYZ Land, Soilbuild Group Holdings and United Engineers Developments (S$1,150 psf ppr). GuocoLand partnered Intrepid Investments for a S$1,136.75 psf ppr bid. Sustained Land placed the lowest bid of S$1,123 psf ppr.

 

The 111,934-square-foot site can be developed to a maximum gross floor area of 391,774 sq ft.

 

It is in a predominantly residential estate with existing public and private housing developments.

 

A myriad of attractions

Amenities such as eateries in Rangoon Road and Owen Road, Pek Kio Market and Food Centre, Pek Kio Park and Farrer Park Primary School are within easy reach by foot. City Square Mall and Mustafa Centre are also a stone&rsquo s throw from the site. 

 

A short distance away are Kallang Polyclinic and KK Women&rsquo s and Children&rsquo s Hospital, noted Justin Quek, deputy group CEO of Realion (OrangeTee and ETC) Group. &ldquo The site will be quite appealing to a variety of future buyers as there are plenty of amenities in the area.&rdquo

 

Tight launch supply in RCR

Yip of Huttons Asia partly attributed the robust participation at the latest GLS tender to the low supply from private residential property launches in the city fringe, or Rest of Central Region (RCR), expected in 2026.

 

&ldquo In 2025, an estimated 12 projects with 4,786 private homes will be launched for sale in the RCR. This will plunge to only three projects with 2,015 units in 2026 after factoring in Dorset Road. Hence, the supply of new homes in the city fringe will be limited in 2026, and this may provide support for prices of RCR homes.&rdquo

 

ERA Singapore CEO Marcus Chu said the healthy turnout for the Dorset Road tender bodes well for state land tender closings for other city-fringe sites. The tender for a plum site in Telok Blangah Road will close in early November.

 

Two other city-fringe sites are slated for launch in November (in Dover Road and Tanjong Rhu Road), and one in December (in Kallang Avenue).

The residents stand to receive between S$2.2 million and S$4.9 million each, depending on the size of their unit

[SINGAPORE] The S$810 million sale of Thomson View condominium has finally been completed,   UOL   : U14 +1.52%and   Singapore Land Group   : U06 +1.3% (SingLand) said in a bourse filing on Thursday (Oct 2), after earlier objections by a small group of owners stalled the deal. 

 

The development on Bright Hill Drive houses 200 apartments, 54 townhouses and a shop unit on a 5-hectare site. It was first put up for tender in February 2024. 

 

Last October, developers UOL, SingLand and CapitaLand Development (CLD) signed a conditional call-and-put option to acquire the 99-year leasehold development at S$810 million, an offer that was 12 per cent lower than the condo owners&rsquo original reserve price of S$918 million. The S$810 million price makes it the largest en bloc deal done in Singapore since Chuan Park&rsquo s S$890 million sale in May 2023. 

 

Owners stood to receive between S$2.2 million and S$4.9 million each, depending on the size of their unit, marketing agent ETC had said. 

 

But the Thomson View deal hinged on consent from at least 80 per cent of owners to lower their reserve price. 

 

It was reported in the media that a supplementary agreement was signed by unitholders around October 2024 to lower the condominium&rsquo s reserve price to S$808 million, paving the way for them to accept an S$810 million offer from the three developers. 

 

In March this year, the condominium&rsquo s collective sale was met with a stop order after efforts to mediate and resolve objections from a small group of owners were unsuccessful. All six objectors have since withdrawn their objections. 

 

The Business Times understands that some of the objections were related to the property&rsquo s lower reserve price. 

 

After a series of court proceedings, the High Court granted a sale order for Thomson View&rsquo s collective sale in July, allowing it to proceed. The collective sale committee costs of S$5,000 and a disbursement of S$3,829.20 were also awarded, with costs borne by the six objectors. 

 

CLD and UOL said then that the progress of the sale enables them to leverage their combined expertise to &ldquo rejuvenate and contribute to the vibrancy of this prime estate&rdquo . 

 

The final price tag of S$810 million works out to S$1,178 per square foot per plot ratio for the site, which UOL, SingLand and CLD plan to redevelop into a 1,240-unit project.

The sale of the Tanjong Katong Road property will be completed on Oct 31

 

[SINGAPORE] Property developer UOL has entered into an agreement to sell Kinex, a retail mall, for US$375 million. The buyers of the freehold property are Kinex Times Square and Xiaohong Property Management.

 

Located at 11 Tanjong Katong Road, the property consists of all the mall&rsquo s commercial strata lots, housed in a three-storey retail podium and a basement level. It has a total net lettable area of 204,223 square feet.

 

In a bourse filing on Wednesday (Sep 10), UOL said that the divestment is an opportunity to &ldquo unlock the value of its investment in Kinex&rdquo , and is part of the group&rsquo s ongoing strategy to reconstitute its property portfolio.

 

Net proceeds from the sale will provide UOL with greater financial flexibility for debt repayment, investments and other corporate requirements. The deal is scheduled to be completed on Oct 31.

 

This sale is the latest in a series of divestments by UOL. Earlier this year, the group sold its ParkRoyal hotel in Yangon. This followed a 2024 transaction in which the company recognised a S$21.6 million gain from the sale of a subisidiary that holds Stamford Court.

 

In July 2023, UOL sold Parkroyal on Kitchener Road to Singapore&rsquo s Worldwide Hotels Group for S$525 million, booking a gain of S$446.2 million.

Could UOL Group list a REIT? This is what CLSA suggests in a report dated Sept 5. The initial thoughts of most readers and investors is that this is an unlikely occurence.

 

Interestingly, this is one of the questions posed to the management ahead of UOL Group&rsquo s AGM held on April 28. In questions to the management, an investor asked whether the board or management formally assessed the monetisation of investment properties via asset spinoffs, REIT listings, or stapled securities to unlock embedded value.

 

UOL&rsquo s management said its focus is on &ldquo Total Portfolio Management&rdquo where the Group will divest non-core assets and reinvest in higher-yielding ones, demonstrating the Group&rsquo s ability to deploy capital effectively. &ldquo As part of the Group&rsquo s overall strategy, different options to create, improve and unlock shareholder value are evaluated. The Group is open to exploring a REIT structure, however this is dependent on market conditions,&rdquo it added.

 

During the AGM, an investor, Sasono Adhiguna, noted that UOL seemed to be the only major property developer in Singapore that did not own a REIT. Group CEO Liam Wee Sin replied that UOL may consider establishing a REIT under the right market conditions.

 

Sasono further questioned if the group establishes a REIT, which market segment would it consider and what would be the right market conditions. Liam replied that the company had a good pipeline and matured real estate assets and would evaluate all possibilities. Key factors would include interest rate and property yields. Group Chairman Wee Ee Lim pointed out that market sentiment and having the right timing for such an exercise were also important considerations.

 

According to the CLSA report a REIT is one of UOL' s &ldquo two major catalysts on the horizon" , the other being the redevelopment of Marina Square. " These could help to narrow the and a potential REIT spinoff as two catalysts in the near to medium term that could narrow the current 58% discount to RNAV.&rdquo

 

CLSA points out that 86% of the group&rsquo s total assets worth $22.8bn are in Singapore, namely from the residential, office, retail and hotel segments. As of Jun 30, the group has $12.7 billion worth of investment properties mainly from its office portfolio in Singapore, CLSA points out. In 1H2025, UOL announced a $9.9 million fair value loss on the back of lower valuations in Australia and UK, offset by gains in Singapore.

 

&ldquo Comparing to peers&rsquo portfolios, we note that UOL&rsquo s portfolio is on aggregate valued at $2,373 psf which is 14-17% below the portfolios of CICT, Suntec Reit and Keppel Reit. Arguably, UOL&rsquo s portfolio may be more dated than the peers hence, the uplift to book value might not be significant under current market conditions, in our view,&rdquo the CLSA report says.

 

Nonetheless, both Suntec REIT and Keppel REIT are trading at discounts to NAV. CLSA observes that Suntec REIT traded above book in 2017 and Keppel REIT traded a lot closer to book at the same time.

 

&ldquo With the office market improving on the back of both easing supply and interest rates, we believe office REITs could trade closer to book, implying around 30% upside potential from current levels if both macro conditions are conducive over the next three years.&rdquo

 

During a results briefing, Liam said UOL had been given provisional permission to redevelop Marina Square under the Strategic Development Initiative (SDI). DBS estimates this would lift the site&rsquo s valuation by three times.

 

On the residential front, CLSA says the sellout in ParkTown Residences earlier this year has propelled UOL to a leading market share of 23% by 1H2025. Skye @ Holland is expected to launch in 3Q2025. Its location in district 10 is likely to be popular with buyers, market watchers reckon. Analysts have estimated that UOL is set to sell at least 1,500 units this year.

 

CLSA has initiated coverage on UOL with an Outperform rating and a $10.50 target price. UOL closed at $7.30 at mid-day on Sept 5, up 41% this year, but still lower than the NAV of $13.59.

CGS International, Citi and DBS Research have all ranked it as their top pick among listed Singapore developers this year

[SINGAPORE] Property developer UOL has been on a bull run recently. And it might be entering a new growth phase.

 

In the year to Tuesday (Aug 19), the stock is up 39 per cent at S$7.19, after hitting a multi-year high of S$7.30 on Aug 14.

 

Already, Singapore&rsquo s largest developer by market capitalisation has been busy building up its pipeline of prime residential sites, completing major asset enhancement initiatives and redeveloping its Central Business District (CBD) assets. 

 

UOL launched Watten House in March last year, Meyer Blue last October, Parktown Residences this February and Upperhouse this July. These projects all sold between 50 and 87 per cent of their units over their launch weekends. 

 

The group has a Holland Drive project, Skye at Holland, for which it is planning to start previews in September. UOL will also be redeveloping Thomson View Condominium, which it bought together with CapitaLand Development in October 2024, into a 1,240-unit project at a later date. 

 

So far, UOL has spent close to S$4.2 billion together with its joint venture partners to acquire land for these six projects. 

 

The developer had been comparatively subdued in the period from 2020 to 2023, when it launched one residential project a year in Singapore. Even before the Covid-19 pandemic, it was not as active, with only two launches a year between 2018 and 2019. 

 

In its latest financial results for the first half of 2025, UOL reported a 58 per cent increase in net profit to S$205.5 million. 

 

Revenue from property development increased by 40 per cent to S$210 million compared to the year-ago period, due to progressive revenue recognition from Pinetree Hill, Watten House and Meyer Blue. 

 

In the second half of the year, revenue recognition from UOL&rsquo s four newest condominium launches will likely start trickling in, which should bode well for the developer&rsquo s full-year results. 

 

Parktown Residences will likely deliver a big boost. The integrated development sold more than 87 per cent of its 1,193 units during its launch in February 2025. This remains one of the highest take-up rates for a new launch this year. 

 

Upperhouse at Orchard Boulevard, which was launched in July, also did well. It was the best-selling Core Central Region project since Midtown Modern was launched in 2021, moving 162 or more than 53.8 per cent of its 301 units at an average price of S$3,350 per square foot (psf). 

 

This record has since been beaten by Wing Tai&rsquo s River Green, which sold 88 per cent of its units at an average of S$3,130 psf in the same month. 

 

UOL&rsquo s success with its recent projects is testament to how the developer is able to appeal to both the mass market and luxury segments of buyers. 

 

Some of these projects, such as Upperhouse and the redevelopment of Thomson View, are also located along the newly opened Thomson-East Coast Line, bringing connectivity which buyers will appreciate. 

 

CGS International, Citi and DBS Research all ranked UOL as their top pick among listed Singapore developers in reports published earlier this year. 

 

Solid margins

DBS analysts Derek Tan and Tabitha Foo rated UOL a &ldquo buy&rdquo , with a target price of S$8.50 in March. 

 

They noted how both Upperhouse and Skye at Holland were sites acquired at significantly lower land costs, which could drive an expansion in UOL&rsquo s development margins and support higher profitability in the medium term. 

 

The site on which Upperhouse sits was acquired for S$1,616 psf per plot ratio (ppr) in February 2024. This is 32 per cent lower than the S$2,377 psf ppr that SC Global and Hong Kong-listed FEC Properties and New World Development paid in May 2018 for a nearby site, which is now Cuscaden Reserve. 

 

UOL bought the site on which Skye at Holland will be built at S$1,285 psf ppr in May 2024. This was 32 per cent lower than the S$1,888 psf ppr paid by a consortium led by Far East Organization for the site next to it &ndash which has since been developed into One Holland Village. 

 

For Skye at Holland, as long as UOL is able to move its units at S$2,700 psf, it should be able to achieve a comfortable 20 per cent margin, DBS Research estimated.  

 

Recurring income, diversified streams

UOL&rsquo s diversified portfolio and its strong presence in the commercial and hotel industries allow the group to generate recurring income streams, OCBC Investment Research said in August after the group reported earnings for H1. 

 

Besides its property development business, UOL also has its hospitality business, which it controls through its subsidiary Pan Pacific. 

 

Its other subsidiary Singapore Land Group (SingLand) owns an extensive portfolio of prime office and retail assets in Singapore, Australia, China and the UK. 

 

In H1, UOL&rsquo s Singapore office portfolio had a committed occupancy of 96.6 per cent, while its retail portfolio had a committed occupancy of 97.3 per cent. Hotel occupancy edged up to 77 per cent in H1. 

 

Now that the developer has mostly completed its asset enhancement initiatives for Singapore Land Tower, this should lead to positive rental reversions as the supply of Grade A office space remains tight in the CBD. 

 

Piling works also began last year for SingLand&rsquo s redevelopment of its iconic Clifford Centre. When completed in 2028, the premium Grade A asset will have more than 52,000 square metres of office and retail space and will be directly connected to the Raffles Place MRT station.  

 

And if UOL and SingLand proceed with the proposed redevelopment of Marina Square, DBS Research believes the gross development value of the asset could increase to 4.5 times its existing value of S$1.05 billion upon completion. 

 

&ldquo This key value-unlocking activity is expected to drive the share prices of both groups higher,&rdquo DBS said. 

 

As for its hotel segment, UOL recently completed asset enhancement initiatives for Parkroyal Parramatta in Sydney and Pan Pacific Perth in May 2025. 

 

Both hotels are expected to benefit from the Australian Trade and Investment Commission&rsquo s projected 41 per cent increase in tourism arrivals in Australia between 2024 and 2028, which makes UOL&rsquo s strategic expansion into the Australia hospitality market timely. 

 

Will UOL maintain its lead?

UOL&rsquo s latest financial results have been strong, but chief executive Liam Wee Sin said the group will remain disciplined in its approach to portfolio management, project execution and capital deployment in a world adjusting to a new trade order. 

 

In May, Citi analyst Brandon Lee flagged several downside risks for UOL, such as cap rates expanding should interest rates rise, an economic slowdown, fall in tourism arrivals and the continuation of cooling measures for a prolonged period. 

 

For H1, Singapore&rsquo s gross domestic product growth averaged 4.2 per cent year on year, but the Ministry of Trade and Industry foresees &ldquo significant uncertainty and downside risks&rdquo in H2, given the lack of clarity over the US&rsquo tariff policies. 

 

There is, however, a silver lining in sight, as interest rates have been falling since the start of the year. 

 

In January, the three-month compounded Singapore Overnight Rate Average was around 3.02 per cent. As at Tuesday, it was around 1.7 per cent. The rate may moderate further, as the US Federal Reserve is expected to cut interest rates in September. 

 

Lower interest expenses could drive UOL&rsquo s return on equity (ROE) higher. DBS Research estimates that a decline of 100 basis points in floating debt could lead to a 13 percentage point increase in ROE for UOL based on a sensitivity analysis. 

 

Given the low interest rate environment and the value that can be unleashed, perhaps it is a good time for UOL to redevelop Marina Square, should it obtain written permission from the Urban Redevelopment Authority to do so. 

 

While its net gearing ratio has inched up slightly in H1 to 0.25 from 0.23, the group&rsquo s balance sheet still remains healthy, which should allow it to maintain its strong momentum for the rest of the year.