OUE's Q1 net profit more than doubles on gains from reit spin-off

First quarter net profit at developer Overseas Union Enterprise (OUE) surged more than 100 per cent after proceeds from spinning off property into OUE Hospitality Trust were recognised.

Earnings came in at $945.6 million, up from $1.7 million in the corresponding period last year.

OUE Hospitality Trust, which was listed last July, holds two assets in Orchard Road - the Mandarin Orchard hotel and the Mandarin Gallery mall.

OUE's sale of these properties to the real estate investment trust (reit) were fully recognised in the first quarter ended Mar 31, as $986.4 million in proceeds.

A fair value gain of $153.1 million on its Lippo Plaza property in central Shanghai also helped boost first-quarter numbers.

The group recorded revenue of $106.9 million in the three months ended Mar 31, up 1.5 per cent over the same period last year, mainly due to contributions from Lippo Plaza and the US Bank Tower in Los Angeles.

Earnings per share for the first quarter came in at 103.93 cents, up from 0.19 in the same period last year. Net asset value per share was $4.06 as at Mar 31, up from $3.18 on Dec 31.

The firm ended the quarter with a cash balance of $864.6 million.

OUE shares closed one cent down at $2.27. The results were released after the market closed.