Mainboard-listed integrated property developer Overseas Union Enterprise Ltd (OUE) is building momentum with robust financial results in the second quarter.
Profit after tax in Q2 climbed 20.3 percent year-on-year to S$20.1 million, while Q2 revenue rose 39.8 percent to S$72.3 million.
“We are reaping the rewards of our well-diversified portfolio of prime assets, with a strong recurring income base. Higher revenues from our Hospitality and Property Investment divisions underpinned the continued strength of our financial performance,” said Dr Stephen Riady, Executive Chairman of OUE.
Q2 revenue from its property investment division increased to S$25.6 million from S$8.1 million in the previous year, while its hospitality division saw a revenue of S$44.6 million, against S$41.6 million last year.
“Singapore’s positive economic outlook, coupled with the projected increase in visitor arrivals in 2011, is expected to benefit the group’s hospitality and retail businesses in Singapore,” said Dr Riady.
“OUE through its Hospitality division manages and operates two five-star hotels in Singapore − Mandarin Orchard Singapore and Marina Mandarin Singapore − both of which continue to experience strong average occupancy rates. The recent addition of Crowne Plaza Changi Airport Hotel to our portfolio will further boost our market share in the hospitality sector.”
The strong second quarter results also lifted the company’s first half results, with gross profit jumping 52.6 percent to S$86.8 million in 1H2011, up from S$56.9 million in 1H2010.
Meanwhile, the increase in OUE’s recurring income was mainly attributed to rental contribution from DBS Building Towers One and Two, as well as from OUE Bayfront.
Last week, OUE announced that OUE Bayfront on Collyer Quay had achieved more than 77 percent take-up of its office net lettable area (NLA). The nearby Change Alley Link Bridge and Change Alley Aerial Plaza Tower, which have a combined NLA of 14,654 sq ft, have been fully leased to retail and F&B tenants.
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