OUE and Fragrance Group expect net losses for H1 2020

Published Wed, Jul 29, 2020 · 02:31 PM

TWO property companies - OUE and Fragrance Group - have flagged guidance of losses made in the first six months of this year.

OUE said that, following a preliminary review of its unaudited financial results for the first half ended June 30, the group is expected to record a loss attributable to shareholders for the first half, reversing from a net profit of S$61.9 million recorded a year ago.

The loss for H1 2020 is due mainly to the fair-value loss booked on disposal of about S$310 million in relation to the sale of the US Bank Tower and Westlawn Garage in Los Angeles, California.

The loss expected to be recorded for H1 2020 is also due to the adverse impact of the Covid-19 outbreak on the group, taking into account the tenant-support measures that the group has put into place for eligible tenants, including rental reliefs, rent deferment, rental rebates and flexible-payment schemes, as well as weaker performance from the hospitality division.

OUE will provide further details on the group's financial performance when it releases its results by Aug 14.

Fragrance Group said that, based on the preliminary review of its draft financial results, it is expected to report a net loss for the six-month financial period ended June 30.