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OUE Q1 net profit falls 91% to S$1m on fair value loss from investment in mutual fund

NON-CASH marked-to-market fair value loss on an investment in a mutual fund dampened results for OUE Limited in its first quarter.

As such, net profit for the mainboard-listed integrated property developer plummeted 90.7 per cent from S$11.1 million in the year-ago period to S$1 million, the group said in a Singapore Exchange filing on Friday evening.

Earnings per share dropped from 1.23 Singapore cents in the previous year to 0.11 Singapore cent.

For the three months ended March 31, revenue dropped 25.8 per cent from S$196.3 million from the year-ago period to S$145.6 million.

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The slide in revenue was mainly due to an absence of contribution from the group's development property division as OUE Twin Peaks was fully sold in October 2017, OUE said in its filing with the Singapore Exchange.

Meanwhile, revenue from OUE's investment properties division increased by 2 per cent to S$69.5 million, due in part to rental contributions from Downtown Gallery, which opened in May 2017.

The hospitality division recorded 14 per cent higher revenue at S$59 million, contributed by the better operating performance of Mandarin Orchard Singapore and Crowne Plaza Changi Airport.

"Oakwood Premier OUE Singapore, which opened in June 2017, also contributed positively to the hospitality division," OUE said.

Meanwhile its healthcare division recorded revenue of S$9.8 million in the first quarter due to contributions from OUE Lippo Healthcare Limited, which became a subsidiary of the company in March 2017.

Net asset value per share crept up to S$4.5 as at March 31, from S$4.46 three months ago.

OUE shares ended unchanged at S$1.81 on Friday before the announcement.