OUE's Q1 2014 Net Profit Soars to S$1 Billion
SINGAPORE, May 9, 2014
SINGAPORE, May 9, 2014 /PRNewswire/ --
*Other Gains of S$1.0 billion largely due to unlocking values of Mandarin
Orchard Singapore and Mandarin Gallery
*Revenue boosted by contributions from Lippo Plaza property in Shanghai and
U.S. Bank Tower
*Healthy cash balance of S$864.6 million
S$ million Change
ended 31 March
Q1 2014 Q1 2013 %
Revenue 106.9 105.4 1.5
Earnings Before Interest and Tax 40.2 38.5 4.5
Net Profit 1,012.2 2.0 >100.0
Net Attributable Profit 945.6 1.8 >100.0
SGX Mainboard-listed integrated property developer OUE Limited ("OUE" or the
"Group") today announced a net profit of S$1.0 billion for the three months
ended 31 March 2014 ("Q1 2014"), reflecting more than 100% increase from S$2.0
million for the same quarter in the previous financial period ("Q1 2013").
This increase is largely due to a recognition of net fair value gain on Lippo
Plaza property which amounted to S$114.8 million, as well as the gain
amounting to S$986.4 million, resulting from unlocking the values of Mandarin
Orchard Singapore and Mandarin Gallery, which had been disposed to OUE
Hospitality Trust ("OUE H-TRUST"). OUE H-TRUST was deconsolidated as a result
of a reduction in the Group's effective interest subsequent to a distribution
in specie made to shareholders in Q1 2014. OUE H-TRUST is an associate of the
Group as at 31 March 2014. The above gains are offset by an allowance for
foreseeable loss of S$105.0 million provided on Twin Peaks based on the latest
On the operations front, Q1 2014 also saw a 1.5% year-on-year increase in
total revenue to S$106.9 million from S$105.4 million in Q1 2013.
Consequently, gross profit increased from S$55.2 million to S$60.4 million for
the same reporting period. These were the results of contributions from Lippo
Plaza property and U.S. Bank Tower.
The Group saw a 4.5% increase in earnings before interest and tax to S$40.2
million and a 26.9% decline in finance expenses to S$24.4 million. Combined
with the one-off gains, the Group recorded a net profit of S$1.0 billion in Q1
2014, compared to S$2.0 million on the corresponding quarter.
Based on net attributable profit on a fully diluted basis, earnings per share
for Q1 2014 and Q1 2013 were 103.93 cents and 0.19 cents respectively. Net
asset value per ordinary share remained healthy at S$4.06 for Q1 2014.
During the quarter in review, the Group's Hospitality division registered
revenue of S$52.3 million. Excluding the contribution from the two disposed
China Hotels, hospitality revenue increased 4.9% year-on-year.
Revenue generated from the Group's Property Investment Division increased by
S$16.9 million due to the inclusion of revenue from the Lippo Plaza property,
which was acquired by OUE Commercial Real Estate Investment Trust ("OUE
C-REIT") in January 2014. The increase in revenue also came from contribution
at the U.S. Bank Tower and higher occupancy achieved by the remaining
commercial properties of the Group in Q1 2014.
Similarly, the sale of residential units for Twin Peaks contributed to the
property development income, bringing in revenue of S$9.4 million for Q1 2014.
Dr. Stephen Riady, OUE's Executive Chairman said, "We are pleased with our
results this quarter as we are now realising the returns from our portfolio of
properties. With the refurbishment work in the retail mall at One Raffles
Place near completion and asset enhancement works at OUE Downtown being on
track, we are well positioned to benefit from further strengthening of our
recurrent income streams."
"Together with our healthy cash balance of S$864.6 million, we are well-placed
to seize opportunities that will be value-enhancing for OUE's continuous
growth," added Dr. Riady.
About OUE Limited
OUE Limited (SGX:LJ3) is a diversified real estate owner, developer and
operator with a real estate portfolio located in prime locations in Asia and
the U.S.. OUE consistently grows its business by leveraging its brands and
proven expertise in developing and managing landmark assets across the
commercial, hospitality, retail and residential sectors primarily in
Singapore. With its core strategy of investing in and enhancing a stable of
distinctive properties, OUE is committed to developing a portfolio that has a
strong recurrent income base, balanced with development profits, to enhance
long-term shareholder value. OUE is the sponsor of OUE Hospitality Trust and
OUE Commercial REIT.
For the latest news from OUE, visit us at www.oue.com.sg .
For further information, please contact:
T.L. WooTel: +65-6809-6050Email: firstname.lastname@example.org
Press spacebar to pause and continue. Press esc to stop.