OUE’s Q2 net profit up 13.3%

Overseas Union Enterprise posted a 13.3 per cent on-year increase in net profit to about S$22.8 million for the second quarter ended June 30, 2012.

Revenue for Q2 was up by 33.8 per cent to some S$96.7 million, compared to the previous year.

In a stock exchange filing, OUE said the increase in revenue was mainly driven by the hospitality and the property investment divisions.

The hospitality division achieved a total revenue of S$57.6 million, compared to S$44.6 million in the previous year.

Meanwhile, revenue from investment properties amounted to S$34.4 million for Q2 2012, up from S$25.6 million in Q2 2011.

The increase was largely due to contribution from OUE Bayfront where occupancy rate has increased as compared to 2011.

As at June 30, 2012, OUE Bayfront has a committed occupancy rate of 85.9 per cent, while OUE Tower and OUE Link are fully leased out.

During the quarter, OUE also recorded higher marketing expenses, administrative expenses as well as finance expenses.

On the outlook ahead, OUE said its hospitality business in Singapore is expected to benefit if the current growth in visitor arrivals is maintained.

OUE added that it will continue to focus on active lease management to maximise returns from its office and retail properties, which currently enjoys healthy occupancy.

On its residential property business, OUE said it will continue to drive the sale of its development project, Twin Peaks, a residential development property at Leonie Hill.

Source : Channel NewsAsia – 7 Aug 2012

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