OUE posts 43.9% fall in Q3 net earnings to $13.4 million

Property and hotel group OUE has recorded a 43.9 per cent fall in third quarter net profit to $13.4 million. -- ST FILE PHOTO: DIOS VINCOY JR
Property and hotel group OUE has recorded a 43.9 per cent fall in third quarter net profit to $13.4 million. -- ST FILE PHOTO: DIOS VINCOY JR

Property and hotel group OUE has recorded a 43.9 per cent fall in third quarter net profit to $13.4 million.

Revenue for the three months to Sept 30 rose by 16.7 per cent to $119.1 million.

This was mainly due to higher revenue recognised by the property development division and the inclusion of revenue from US Bank Tower that was acquired in June.

Gross profit fell by $2.8 million, due largely to lower contributions from 6 Shenton Way as a result of lower occupancy for its Tower One during quarter.

Earnings per share fell to 1.47 cents from 2.62 cents previously while net asset value per share slipped to $3.43 compared to $3.49 as at Dec 31.

Looking ahead, OUE said that with the successful listing of OUE Hospitality Trust in July, the group has established a new fund management division, which will benefit from the stable income streams generated from such business.

It has also recently announced that it is exploring the listing of OUE Commercial Trust, which will allow the group to augment its fund management division.