Singapore-listed developer OUE Limited’s net profit for FY2014 rebounded to $1.1 billion from a net loss of $36.6 million in the previous financial year.
The reversal is attributed to the disposal of Mandarin Gallery and Mandarin Orchard Singapore to OUE Hospitality Trust. Another reason is the fair value gains derived from OUE Bayfront, as well as inclusion of revenue from the U.S. Bank Tower in Los Angeles and Lippo Plaza in Shanghai.
In contrast, revenue from business and operations declined by 4.6 percent to $416.4 million due to the absence of revenue from the China hotels which were sold in September 2013.
As for the developer’s sole residential project, OUE Twin Peaks (pictured), it contributed $38.3 million to its property development income, translating to a 39 percent annual decline given the sluggish transaction level in Singapore’s housing market.
Moving forward, the company will focus on active rental management and ongoing asset enhancement activities to boost the recurring income of its investment properties.
For example, enhancement works at OUE Downtown is targeted for completion by next year, and the refurbishment will transform OUE Downtown’s existing podium into a five-storey retail mall with a supermarket to cater to the lifestyle needs of residents and workers in the area.
“Our asset enhancement activities in the past have borne fruit and contributed to long-term shareholder value. Moving forward, we will continue to drive this strategy, while at the same time, look out for opportunities which will facilitate and strengthen our recurrent income base,” said OUE Executive Chairman Stephen Riady.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
