OUE swings into the red in Q2 after fair-value losses

OUE Limited swung into the red in the second quarter ended June 30, 2015, with a net loss of S$16.28 million against a net profit of S$4.43 million a year ago, owing to S$20.5 million of losses mainly arising from the fair value of its investment in a mutual fund.

But OUE stressed that these fair-value losses are non-cash items.

Excluding these losses, the group's business and operations continue to contribute attributable profits of S$4.3 million during the quarter, compared to S$4.8 million a year ago.

The group's second-quarter revenue contracted 4.5 per cent to S$95.66 million, dragged down by lower contribution from its hospitality division as well as condo project OUE Twin Peaks that received temporary occupation permit in February. This was mitigated by better performance by the property investment division, which saw higher occupancy at US Bank Tower in Los Angeles.

The directors have proposed an interim tax-exempt dividend of one Singapore cent per share and a special tax-exempt dividend of three Singapore cents per share.