Mainboard-listed property group Overseas Union Enterprise (OUE) reported that its net profit in the third quarter climbed more than 16 times to $127.3 million from $7.5 million a year ago, on the back of a 52.9 percent increase in revenue to $512.2 million.
This was largely attributed to the improved contributions from its Hospitality and Retail division.
OUE’s Hospitality division, which has a portfolio of hotels in Singapore, Malaysia and China, achieved a sales growth of 29.3 percent to $42.4 million from $32.8 million in the previous year.
The retail division also contributed favourably to the group’s Q3 income, with Mandarin Gallery recording a retail income of $8.2 million in the third quarter.
Dr. Stephen Riady, executive chairman of OUE, said: “Apart from the strong growth from our hospitality and retail division this quarter, we are looking forward to contributions from our recently-acquired DBS Towers 1 and 2 and the Twin Peaks residential project. Our portfolio in the commercial sector has grown substantially with the acquisition of DBS Towers 1 and 2.”
Looking ahead, the company said its hospitality and retail operations are expected to benefit from the positive outlook of the Singapore economy and the increasing visitor arrivals, as well as the continuing strength of the Asian economy. The company expects DBS Towers 1 and 2 to contribute positively to its earnings in the fourth quarter.