OUE’s net profit crashes 89.3% to $8.3m in Q1

Blame it on fair value losses.

OUE Limited reported that its attributable profit for the first quarter dropped to $8.3 million, mainly on back of fair value losses arising from the mark-to-market of investments and the absence of a one-off divestment gain on the sale of Crowne Plaza Changi Airport recorded in the same period last year.

The group’s revenue more than doubled to $68.7 million during the quarter, on the back of higher contribution from One Raffles Place and the group’s equity-accounted investees.
Providing an update on its key operations, OUE said that it remained focused on asset enhancement initiatives at Crowne Plaza Changi Airport Extension (CPEX), OUE Downtown and U.S. Bank Tower.

OUE noted that the construction of CPEX is nearing completion, and that the property will be divested to OUE Hospitality REIT once it obtains its temporary occupancy permit.

Meanwhile, asset enhancement works at OUE Downtown, which will convert it into a mixed-use development comprising offices, a shopping mall and serviced suites, are slated for completion at the end of 2016.