MAINBOARD-LISTED integrated property developer OUE Limited on Friday recorded a net profit of S$1.09 billion for its financial year ended Dec 31, 2014, rebounding from the S$36.6 million loss a year ago.
This was primarily due to the unlocking of values of Mandarin Orchard Singapore and Mandarin Gallery upon their disposal to OUE Hospitality Trust and the fair-value gains on OUE Bayfront, Lippo Plaza and US Bank Tower.
Earnings per share was S$1.20 for the year, compared to the loss per share of S$0.04 in FY2013.
The group declared a final dividend of one Singapore cent per share payable in May, bringing the total cash dividend for the full year to two cents per share. This is on top of the distribution in specie of one OUE Hospitality Trust stapled security for every six OUE shares paid out last March of about 13.9 cents per share.
Total distribution for FY2014 is about 15.9 cents a share.
Revenue from business and operations dipped 4.6 per cent to S$416.4 million for FY2014, due to absence of revenue from China hotels which were divested in September 2013.
But revenue from the property investment division rose S$19.6 million to S$157.8 million after the inclusion of revenue from Lippo Plaza property in Shanghai and the US Bank Tower in Los Angeles.
The group's sole residential development, OUE Twin Peaks, contributed revenue of S$38.3 million to the property development income. The 39 per cent decrease year-on-year is due mainly to lower sales, tied to the lacklustre residential property market in Singapore.
Net finance expense fell 30.9 per cent to S$64.0 million, led by higher interest income, lower borrowings and absence of exchange losses.
Net gearing fell to 43.9 per cent in FY2014 from 57.2 per cent a year ago, while net asset value per share rose 33 per cent to S$4.23.
In its outlook, the group said it would focus on active lease management and ongoing asset enhancement activities to enhance recurring income from its portfolio of investment properties.