OUE H2 profit nearly doubles to S$101.2 million as all segments book higher revenue

PROPERTY developer OUE Limited reported earnings of S$101.2 million for the second half of 2022, close to double that of its net profit of S$50.9 million in the corresponding prior-year period. 

The stronger bottomline showing was due chiefly to higher revenue, which rose to S$292.4 million from S$148.8 million. 

The board of directors has proposed a final cash dividend of S$0.015 per share, up from the final dividend of S$0.01 per share in 2021. The dividend, if approved by shareholders at the annual general meeting on Apr 25, will be paid out on May 31. 

OUE said all its business segments turned in higher revenue for the period. The real estate segment’s investment properties division saw revenue rise 11 per cent year on year to S$100 million in H2 due to higher contribution from investment properties in Singapore and China as lower rental rebates and other support measures were granted to tenants. 

The real estate segment’s hospitality division saw revenue rise to S$94.2 million from S$31.8 million due to the rebranding of Hilton Singapore Orchard, as well as higher contribution from Crowne Plaza Changi Airport following the continued recovery of tourism and the meetings, incentives, conventions and exhibitions (MICE) segment. 

OUE’s healthcare segment – which mainly constitutes revenue from OUE Lippo Healthcare Limited and First Reit – saw revenue rise to S$77.8 million from S$16.6 million. 

Revenue for the consumer segment, which accounts for contributions from the food and beverage operations of the group, rose to S$20.1 million from S$8.7 million mainly due to full-period contribution from dining concepts that were launched during the second half of 2021 and the first half of 2022. 

OUE’s share of results of equity-accounted investees fell 54 per cent to S$79.3 million in H2 from S$172.2 million in the prior-year period. This was due to lower contributions from Gemdale Properties and Investment Corporation as a result of the reduced business activities brought about by weak property market conditions in China, the consolidation of First Reit, and lower contribution from joint-venture company Auric Digital Retail. 

The decrease was partially offset by higher share of profit in OUE’s joint-venture company, OUE Allianz Bayfront LLP, due to higher fair-value gains recognised for its investment property, OUE Bayfront.

SEE ALSO

OUE Lippo Healthcare’s losses widen to S$4 million in H2 despite higher revenue

OUE C-Reit H2 DPU falls 24.1% to S$0.0104 despite higher revenue

For the full year, OUE’s profit rose to S$189.9 million from S$80.9 million, while revenue was up 63.3 per cent at S$491.1 million. 

Looking ahead, OUE said the reopening of Singapore’s borders has sparked a revival in the hospitality and tourism sectors. 

With its portfolio of high-quality hospitality assets, OUE said it is well-positioned to capture the increasing demand from the return of corporate and leisure travellers, as well as MICE events. 

The group, however, noted that while most countries have reopened their economies and are moving forward from the pandemic, the outlook for the global economy remains uncertain with recessionary fears fuelled by ongoing geopolitical tensions and tightening financial conditions.

Shares of OUE closed flat at S$1.23 on Wednesday.