OUE swings into the black in Q2

PROPERTY developer OUE Limited swung back to profitability in the second quarter ended June 30 with a net profit of S$25.7 million, after marking a net loss of S$16.3 million a year ago.

The turnaround came on the back of a 40.4 per cent jump in revenue to S$134.3 million, bolstered by strong contributions from both property investments and development.

Thanks to the consolidation of revenue from One Raffles Place following the acquisition of additional interest in OUB Centre Limited (OUBC) in October 2015, revenue from the property investments division leapt 58.4 per cent to S$67.6 million.

The continued marketing efforts of high-end condominium project OUE Twin Peaks also led to higher sales in the second quarter, with the property development division clocking in revenue of S$18.7 million, up from S$3.3 million a year ago. Sales of more than 100 units were recorded at OUE Twin Peaks in the second quarter.

Revenue from the hospitality division, however, marked a slight dip to S$44.8 million in the second quarter from S$46.6 million in the same period last year.

The board of directors has proposed an interim tax-exempt dividend of one Singapore cent per share and a special tax-exempt dividend of two Singapore cents per share. This compares to an interim dividend of one cent per share and a special dividend of three cent per share in the second quarter of last year.

OUE opened OUE Skyspace, California's highest open-air observation deck, at the US Bank Tower to the public on June 25, as well as OUE Skyslide, a 45-foot-long outdoor glass slide offering visitors the city view. The US Bank Tower had a committed occupancy rate of 74.6 per cent as at June 30.