OUE posts 85% surge in Q1 profit

OUE reported an 85 per cent surge in net profit for the first quarter ended March 31 to S$15.4 million on the back of stronger revenue, reversal of impairment losses on OUE Twin Peaks and lower finance expenses.

Its revenue of S$196.3 million, a 60 per cent jump from a year ago, was bolstered by strong contributions from both the property development and property investments divisions.

Revenue from the property development division surged to S$72.6 million in the first quarter, from S$4.7 million in the year-ago period, thanks to the sale of more units in luxury project OUE Twin Peaks.

As at March 31, the group has sold 411 units sold at OUE Twin Peaks. The revenue recognised during the quarter stemmed from the units sold where completion of the sale had occurred. The revenue relating to the units sold under the deferred payment schemes are deferred until completion of the sale of the unit, although non-refundable deposits were collected.

The group's property investments division saw revenue rise 6 per cent to S$68 million on the back of stronger performance from all the investment properties in the group's portfolio.

Revenue from the hospitality division was marginally higher by 0.4 per cent at S$51.9 million, due mainly to increased contribution from the enlarged room inventory at Crowne Plaza Changi Airport.