OUE's profit for 2015 drops on lack of one-off gain

SINGAPORE - OUE Limited announced growth in revenue in 2015 on the back of stronger property investment returns, but net profit was lower than 2014 when one-off gains were recorded.

For the year ended Dec 31, revenue of the property group rose 3.6 per cent to $431.5 million. This included a $35.6 million rise in property investments revenue, "due to consolidation of revenue of One Raffles Place following the acquisition of additional interests in OUB Centre in October 2015," the company announced on Friday (Feb 19).

But net profit still dropped 85.7 per cent year-on-year to $156.4 million, as the company was hit by a $23.2 million impairment loss for OUE Twin Peaks.

The drop also came from a higher base in 2014, when OUE's net earnings were boosted partly by a one-off gain from the disposal of Mandarin Orchard Singapore and Mandarin Gallery to OUE H-Reit.

As a result, earnings per share for 2015 were 17.23 cents, down 85.7 per cent from a year ago. Net asset value was $4.35 per share, up 2.8 per cent year-on-year.

The company's directors recommend a final cash dividend of one cent per share, unchanged from 2014. The final dividend will be paid on May 27, subject to shareholders' approval.

Looking ahead, the company will focus on its asset enhancement initiatives and active lease management to drive earnings, OUE said.

By the end of this year, OUE will complete the enhancement work at OUE Downtown in Singapore. The mixed-use development already has a committed office occupancy rate of 91 per cent.

The US Bank Tower in Los Angeles also has a committed commercial occupancy rate of almost 74.7 per cent, while the construction of a new observation deck there is set to complete this year.

Meanwhile, the construction of Crowne Plaza Changi Airport's 10-storey extension is also set for completion in June this year.

OUE shares closed down one cent or 0.6 per cent to $1.65 ahead of the results announcement on Friday.