4 days ago
OUE back in the black with H1 net profit of S$35.6 million
[SINGAPORE] OUE recorded a net profit of S$35.6 million for the first half of 2025, reversing from the S$96.1 million loss in the year-ago period.
The real estate and healthcare group on Thursday (Aug 14) said the turnaround was due mainly to S$94.9 million in provisional negative goodwill recognised for the acquisition of additional equity interests in an equity-accounted investee. It also cited higher adjusted earnings before interest and taxes, as well as greater finance income.
However, H1 revenue fell 6.9 per cent to US$292.8 million, from S$314.5 million in the same period the year before.
'This was mainly due to lower contribution from the group's real estate segment, which decreased 9.7 per cent to S$194.5 million from S$215.4 million in H1 2024,' OUE said.
In the latest period, the group's investment properties and fund management division recorded an 8.5 per cent decline in revenue to S$95.1 million. This was attributed largely to the absence of contributions from Lippo Plaza Shanghai, which was divested last December.
Hospitality division revenue was 9.8 per cent lower at S$99.2 million in H1 2025, following a high base in 2024 which was driven by several high-profile events and concerts in Singapore, as well as the start of the visa-waiver arrangement between the city-state and China.
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Softer travel demand and consumer spending, ongoing macroeconomic headwinds and geopolitical tensions also weighed on the performance in H1 2025.
OUE's healthcare segment revenue was S$75.3 million, comparable with the S$76.3 million in H1 2024.
The group's other revenue segment – primarily contributions from its food and beverage operations – recorded S$23 million in H1, up slightly from the S$22.8 million the year before.
OUE said: 'While dining concepts launched last year contributed for the full period, this was offset by softer consumer demand amid macroeconomic uncertainties and market saturation.'
The group reported earnings per share of S$0.047 in H1 2025, as opposed to a loss per share of S$0.1142 in H1 2024.
An interim dividend of S$0.01 per share was declared, unchanged from that in the year-ago period.
'Despite the challenging backdrop, the group's portfolio, comprising prime and strategically located commercial properties with a diversified tenant base, hospitality and retail assets, as well as the complementary healthcare segment, is expected to provide stable performance in 2025,' OUE said.
Shares of OUE closed flat at S$1.12 on Thursday, before the announcement.
