Oakwood Premier OUE Singapore is a 268-unit luxury serviced apartment, located in the heart of Singapore.
Mainboard-listed OUE Limited saw its revenue for the third quarter of 2017 drop 56.6 percent to $182 million, due to the absence of $205.0 million non-recurring revenue registered on the sale of the extension to Crowne Plaza Changi Airport (CPEX) and lower contribution from the development property division.
The decrease, however, was partially mitigated by higher contribution from its hospitality and healthcare divisions.
In an SGX filing, the company revealed that revenue from its investment properties division and hospitality division increased to $67 million and $58.6 million, respectively, while revenue from OUE Twin Peaks fell to $38.5 million due to fewer sales completed during the period.
Nonetheless, OUE Twin Peaks was fully sold as at October 2017, thanks to the group’s active marketing effort.
Revenue from its healthcare division stood at $11.3 million.
Earnings before interest and tax (EBIT) fell 58.3 percent to $49.4 million, mainly due to the absence of $66.7 million non-recurring gain on disposal of CPEX posted in Q3 2016.
With this, attributable profit plunged 90 percent to $10.7 million from $107.6 million previously.
Looking ahead, OUE executive chairman Dr Stephen Riady expects the commencement of operations at Downtown Gallery as well as Oakwood Premier OUE Singapore to further increase the group’s “recurring income base and enhance shareholder value, which has always been our focus”.
“We remain committed to delivering stable earnings by identifying new opportunities and exploring potential to unlock synergistic gains,” he added.
This article was edited by Keshia Faculin.