OUE Limited has reported earnings of $50.9 million for the 2HFY2021 ended December, reversing from losses of $136.2 million in the corresponding period the year before.
In the FY2021, the group logged earnings of $80.9 million from losses of $343.4 million in the FY2020.
The earnings were due to higher adjusted EBIT, lower share of fair value losses on investment properties and mark-to-market fair value gains on investments designated at fair value. This was partly offset by higher impairment losses recognised on property, plant and equipment during the year.
Earnings per share (EPS) for the 2HFY2021 and FY2021 stood at 5.82 cents and 9.21 cents on a fully diluted basis respectively.
2HFY2021 revenue fell 35.1% y-o-y to $148.8 million due to lower contribution from OUE’s real estate segment, which saw declines across all three divisions – investment properties, hospitality and development properties.
Cost of sales for the 2HFY2021 fell 34.4% y-o-y to $75.2 million.
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2HFY2021 gross profit fell 35.8% y-o-y to $73.6 million, while adjusted EBIT increased by 71.9% y-o-y to $209.0 million. The higher adjusted EBIT was mainly due to higher contribution from the healthcare and consumer segments.
During the FY2021, revenue fell 43.3% y-o-y to $300.8 million.
In the FY2021, the investment properties division saw revenue fall 26.2% y-o-y to $195.5 million due to the absence of contribution from US Bank Tower following its disposal in September 2020, as well as the absence of contribution from OUE Bayfront, OUE Tower and OUE Link following the partial divestment in March 2021.
The group’s hospitality division saw revenue fall 32.6% y-o-y to $57.6 million in the FY2021, mainly due to the lower room inventory at Mandarin Orchard Singapore on the back of renovation works.
The development properties division saw revenue plunge 98.8% y-o-y in the FY2021 to $1.7 million as a result of fewer completions of OUE Twin Peaks units sold under the deferred payment schemes in FY2021.
The healthcare segment climbed 6.1% y-o-y to $31.2 million in FY2021.
The consumer segment saw the largest growth in FY2021 with a 40.5% y-o-y increase to $14.7 million due to new dining concepts launched during the year. According to OUE, the consumer segment “can look forward to new growth drivers from the acquisition of equity interests in PT Matahari Department Store Tbk (Matahari) and PT Multipolar Tbk (MPC), which will give the group exposure to the fast-growing retail, consumer and technology sectors, as well as the opening of new restaurant concepts in 2022”.
FY2021 share of results of equity-accounted investees increased by $112.6 million to $231.9 million in FY2021 from $119.3 million mainly due to recognition of the contribution from the OUE Bayfront Property as an equity-accounted investee. The higher share of results were also attributable to the higher contribution from First REIT due to lower share of fair value losses on investment properties.
In addition, the increase was also contributed by the acquisition of shares in Matahari Department Store Tbk, which is listed in the Indonesia Stock Exchange by a joint venture company following a voluntary tender offer completed on July 3, 2021.
As at end-December, cash and cash equivalents stood at $487.9 million.
The group has declared a final dividend of 1 cent per share, same as the year before, and bringing the final dividend for the FY2021 to 2 cents per share. The final dividend will be payable on May 26.
Shares in OUE closed 1 cent higher or 0.77% up at $1.31 on Feb 28.
