OUE to book H1 FY2026 net loss on associate losses, impairment charge
It owns 29.07% of an investee company which has been hit by the slowdown of the property market in China
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[SINGAPORE] OUE is expected to book a net loss for the first half ended Jun 30, said the group in a bourse filing on Friday (Jul 31).
The expected losses come mainly from the share of results of one of its equity-accounted investees, Gemdale Properties & Investment Corporation, which is estimated to have run up losses.
Gemdale, which is 29.07 per cent owned by OUE and has business in China, was hit by the prevailing slowdown of the property market and the current economic environment there.
OUE had recorded a S$46 million loss from its share of results of equity-accounted investees, including Gemdale, in the first half ended Jun 30, 2025. A loss ranging from S$30 million to S$50 million is expected to be recorded for H1 2026.
The group also expects to record an impairment loss of S$40 million to S$60 million due to its investment in Gemdale.
It added that the loss attributable to the share of results of equity-accounted investees and the expected impairment of the group’s investment in Gemdale are largely non-cash in nature.
They have no material impact on OUE’s operational cash flow and corporate funding requirements.
OUE is expected to announce its H1 results by Aug 14.
The counter ended Friday flat at S$1, before the news.
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