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OUE Q1 profit plunges 91.8% in absence of one-off gains

PROPERTY developer OUE's net profit for the first quarter ended March 31, 2015 plunged 91.8 per cent to S$77.17 million, compared to S$945.63 million in the year-ago period, due to the absence of one-off gains from the deconsolidation of OUE Hospitality Trust.

Meanwhile, the group's revenues held steady at S$107.97 million, up one per cent from the corresponding period a year ago, as it recognised higher contributions from Lippo Plaza, US Bank Tower and OUE Twin Peaks.

In the last quarter, revenue from the group's hospitality business fell 4.1 per cent to S$50.2 million as a result of lower occupancy rates at its hotel properties.

Over the same period, revenue from its investment property division shrank by 3.2 per cent to S$42.5 million in the absence of contribution from Mandarin Gallery, following the decrease in equity interest in OUE H-Trust in March last year.

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Meanwhile, OUE's sole residential project, OUE Twin Peaks, obtained its Temporary Occupation Permit (TOP) in February 2015 and contributed S$13.4 million in the first quarter.

Looking ahead, OUE expects the construction of the 10-storey extension building to Crowne Plaza Changi Airport to be completed by year's end, and no later than June 2016. The group added that asset enhancement works at both OUE Downtown and US Bank Tower are in progress.

Despite cautious sentiments prevailing in the high-end residential market, the group will continue to drive sales of units at OUE Twin Peaks, it said.

For the first quarter, OUE's earnings per share stood at eight cents while net asset value per share was S$4.35. No dividends were declared for the quarter. Before results were released on Friday, OUE closed trading unchanged at S$2.18.