OUE H1 profits plummeted 64.9% to $6.35m

It missed contributions from its development property division.

OUE’s profits for the first half of 2018 crashed 64.9% to $6.35m from $18.12m last year. Revenue also fell by 22.8% to $296.29m from $383.61m last year.

According to its financial statement, the decrease is mainly due to the absence of the contribution from the development property division.

Revenue from investment properties division grew to $69.8m mainly due to rental income from Downtown Gallery, which opened in May 2017.

Revenue from the hospitality division jumped to $54m mainly due to contribution from full quarter contribution from Oakwood Premier OUE Singapore, the serviced apartments at OUE Downtown, which opened in June 2017.

There was no contribution from the development property division in the current quarter as there was no completion of sale of units.

“The revenue relating to the units sold under deferred payment schemes are deferred until completion of the sale of the unit although non-refundable deposits were collected,” OUE added.

Revenue from OUE Lippo Healthcare fell mainly due to lower revenue recorded by operations in China. Contribution from the nursing facilities in Japan remain stable but reported revenue declined due to the weakening of the Japanese Yen.

For the second quarter, profits also fell 24.6% to $5.32m, whilst revenue dropped by 19.6% to $150.68m.