SINGAPORE (Aug 3): Property group OUE has announced earnings of $7.1 million for the 2Q17 ended June, down 72.6% from $25.7 million in 2Q16 mainly due to a lower reversal of impairment losses on OUE Twin Peaks
Revenue for 2Q17 grew 39.5% to $187.3 million compared to $134.3 million a year ago.
This was due largely to a more than doubling of development property income to $55.2 million in 2Q17 from $18.7 million in 2Q16, attributed to a higher number of OUE Twin Peaks units sold where the sales was completed in current quarter.
Meanwhile, revenue from the investment properties division came in 1% lower at $67 million from $67.6 million a year ago.
Revenue from the hospitality division increased 8.7% to $48.7 million over the quarter on contributions from both Mandarin Orchard Singapore and the enlarged Crowne Plaza Changi Airport hotel.
A 90.7% increase in other revenue to $4.4 million was also registered, mainly due to the full quarter revenue contribution by OUE Skyspace, the observation deck at US Bank Tower, which was opened in June 2016.
Other gains fell 84.8% to $4.2 million in 2Q17 from $27.8 million in 2Q16 due to lower reversal of impairment losses on fewer units OUE Twin Peaks sold under deferred payment schemes in 2Q17.
Share of results of equity-accounted investees increased $7.8 million to $15.1 million in 2Q17, mainly due to higher share of results recognised by a joint venture that holds equity interests in Gemdale Properties and Investment Corporation Limited, as well as higher share of results from OUE Hospitality Trust.
OUE has declared an interim dividend of 1 cent as well as a special dividend of 2 cents per share, to be paid out by Sept 29.
In its outlook, the group acknowledges that risks to achieving sustained recovery still remain despite an improving economic outlook, and expects headwinds to persist in the tourism market.
Adding that its Downtown Gallery and Oakwood Premier OUE Singapore properties commenced operations in May and June this year respectively, OUE says it believes its recent acquisition of International Healthway Corporation will enable it to expand into the healthcare real estate sector.
Shares of OUE closed flat at $2.05 on Thursday.
