OUE says focus will be on active lease management as Q1 profits surge 85%

Artist's impression of OUE Downtown Gallery.
Artist's impression of OUE Downtown Gallery.PHOTO: OUE
Artist's impression of OUE Downtown Gallery.
Artist's impression of OUE Downtown Gallery. PHOTO: OUE

SINGAPORE - Property developer and operator OUE said it will focus on active lease management and its ongoing asset enhancement initiatives amid global uncertainties and a subdued Singapore economy.

Asset enhancement initiatives at OUE Downtown Gallery are almost completed, with the opening of Downtown Gallery and Oakwood Premier OUE Singapore scheduled in the second quarter of 2017, the company said in a release last Friday (May 5), while announcing its quarterly results.

Mainboard-listed OUE posted an 85 per cent surge in net profit for the first quarter ended March 31 to S$15.4 million due to strong contributions from its property development and property investment divisions, the release stated.

Revenue increased by 60 per cent to S$196.3 million, with the property development division reporting a revenue surge to S$72.6 million in the first quarter, thanks to the sale of more units in its OUE Twin Peaks condo.

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As at March 31, the group has sold 411 units sold at OUE Twin Peaks.

The revenue recognised during the quarter stemmed from the units sold where completion of the sale had occurred.

The group's property investments division saw revenue rise 6 per cent to S$68 million on the back of stronger performance from all the investment properties in the group's portfolio.

Revenue from the hospitality division was marginally higher by 0.4 per cent at S$51.9 million, due to increased contribution from the enlarged room inventory at Crowne Plaza Changi Airport.