SINGAPORE (May 13): OUE Limited has reported a profit attributable to shareholders of $1 million for 1Q19, unchanged from a year ago despite growth in earnings before interest and tax (EBIT).
This was largely due to non-cash finance costs on lease liabilities recognised on the adoption of SFRS(I) 16 on leases, says the group in its filing on Friday.
Group revenue grew 1.2% on-year to $147.3 million from $145.6 million on the back of higher contributions from the Investment Properties and Development Property divisions as a result of higher occupancy at US Bank Tower and certain OUE Twin Peaks units sold under deferred payment schemes, respectively.
Hospitality division revenue, however, fell by $2.6 million y-o-y due to lower room revenue and banquet sales from Mandarin Orchard Singapore, while revenue contribution from the Healthcare division booked a decline due to lower revenue booked by OUE Lippo Healthcare’s operations in China.
In all, EBIT grew 13.6% to $62 million from $54.6 million a year ago, attributed to contributions from First Real Estate Investment Trust and Bowsprit Capital Corporation Limited (acquired in Oct 2018) as well as higher contribution from Oakwood Premier OUE Singapore.
Looking ahead, OUE Limited expects the hospitality sector to remain competitive this year until an anticipated tapering of supply after 2019, although the outlook for Singapore’s office market “appears positive”.
Shares in the group closed 1 cent higher at $1.74 on Friday.
