OUE Q1 net profit inches up 0.3% to S$1m

FIRST-QUARTER net profit for property firm OUE crept up 0.3 per cent to S$1 million from the previous year, the firm announced on Friday. For the three months ended March 31, revenue edged up 1.2 per cent to S$147.3 million from the previous year. The increase was mainly due to higher contributions from the investment properties and development property divisions but was partially offset by lower contributions from the hospitality and healthcare divisions.

EBIT also increased by S$7.4 million to S$62 million, thanks to contributions from First Real Estate Investment Trust and Bowsprit Capital Corporation Limited, which were acquired in October 2018, as well as higher contributions from Oakwood Premier OUE Singapore.

But the company suffered the non-cash finance costs on lease liabilities arising from the adoption of the new accounting standard on leases with effect from Jan 1 this year.

Earnings per share came in flat at 0.11 Singapore cent from 0.11 cent in the previous year.

OUE shares closed up S$0.01 or 0.6 per cent at S$1.74 on Friday.