PROPERTY developer OUE on Thursday (Feb 29) posted earnings of S$40.9 million for the second half of the fiscal year ended December 2023, down 59.6 per cent from S$101.2 million in the corresponding year-ago period.
On a per-share basis, earnings for H2 came in at S$0.0485 versus S$0.118 in the prior year, the company reported in a filing to the bourse.
The group attributed the weaker bottom line figures for the period under review to a combination of factors. These were namely a lower share of results of equity-accounted investees, higher fair-value losses recognised for investment properties and finance expenses, as well as a lower net write-back of impairment losses recognised on property, plant and equipment.
OUE said it also booked one-off gains in H2 2022 for the negative goodwill on investment in an equity-accounted investee and the reclassification of hedging reserves, which had boosted its profit figures then.
Revenue for H2 rose 8.9 per cent to S$318.6 million from S$292.4 million due to higher contributions from the group’s investment properties and hospitality divisions within the real estate segment, as well as higher revenue from its healthcare segment.
The board of directors has declared a final dividend of S$0.01 per share, down from a final dividend of S$0.015 per share paid out last year. The board has also declared a special dividend of S$0.02 per share as part of its 60th anniversary celebrations, OUE said.
The final and special dividends are subject to shareholder approval at the company’s annual general meeting on Apr 26. If approved, these dividends will be paid out to shareholders on May 24.
OUE’s net profit for the full year was down 57.3 per cent to S$81.1 million. Revenue for the full year was up 26.9 per cent to S$623.1 million.
Looking ahead, the group said the global and domestic economic environment is expected to remain challenging and uncertain.
OUE’ said its “prime portfolio of strategically located commercial properties with diversified tenant base, hospitality and retail assets” as well as its complementary healthcare segment, is expected to provide a “stable performance” this year.
The company added that it has sufficient liquidity to meet its debt obligations and will continue to exercise prudent capital management.
Shares of OUE ended Thursday at S$1.04 prior to the results announcement, down 1 per cent or S$0.01.
