OUE net profit jumped 23.3% in 1Q 2011

Overseas Union Enterprise net profit grew from $184.6 million to $227.6 million.

According to OUE, its profit-before-tax for the three months ended 31 March 2011 (“1Q2011”) grew 29.9% to S$274.3 million on the back of a 42.2% rise in revenue to S$68.2 million led by continued growth in its Hospitality and Property Investment divisions.

Strong tourist arrivals and receipts in Asia continued to spur growth in the Group’s hospitality division, it contributed 11.5% improvement in revenue to S$45.2 million in the first quarter. Revenue per available room (“RevPAR”) for Mandarin Orchard Singapore rose approximately 17.4% in 1Q2011 versus the same period last year.

Rental income grew more than 300%, from S$7.3 million recorded in 1Q2010 to S$22.5 million in the latest quarter. This was mainly due to contributions from leases at DBS Building Towers One and Two which were acquired by the Group on 30 September 2010.

With OUE Bayfront having obtained the Temporary Occupancy Permit (“TOP”) in January 2011, the Group recorded a fair value gain of S$249.2 million, thus driving its 1Q2011 net profit growth.

Based on the latest set of financial results, earnings per share for 1Q2011 reached S$0.23 compared to S$0.19 in 1Q2010. Total assets of the Group as at 31 March 2011 grew to S$5.0 billion from S$4.7 billion, as at 31 December 2010. This translates to a net asset value per share of S$3.09, as at 31 March 2011.

The Group continues to maintain a healthy balance sheet with a cash position of S$243.6 million. The increase of S$17.1 million in cash during the quarter was due mainly to cash inflow from operating activities net of disbursement for development cost of the Group’s investment properties.

Commenting on the Group’s results, Dr Stephen Riady, OUE’s Executive Chairman said, “Our strategy of expanding our asset portfolio and enhancing the value of our assets has certainly proven to be the correct one. Hospitality and commercial sectors continued to be our growth drivers in this quarter. Riding on the current trend, we believe that these two business segments will continue to drive OUE’s growth in this fiscal year.”