OUE braces for H1 loss amidst China property market woes

It attributed its expected loss to partially owned investee company GPI.

OUE Limited is expecting to report a loss in the first six months of 2024 vs a profit of $40.2m that was recorded in the first six months of 2023.

In an SGX filing, the commercial real estate company blamed its performance on losses from Gemdale Properties and Investment Corporation (GPI), an investee company of which 25.2% is owned by the group.

GPI is bracing for record losses in H1 ranging between $92m to $106m on the back of “the prevailing slow-down of the property market and the current economic environment in the [People’s Republic of China].”

“The loss attributable to share of results of equity-accounted investors is non-cash in nature and there is no material impact on the Group’s operational cash flows and corporate funding requirements,” OUE Limited said in a statement.

OUE Limited expects to release its unaudited financial statements on or before 14 August.

ERRATUM: An earlier version of this article stated that OUE is expecting a $40.2m loss. This is incorrect, as the $40.2m was the profit recorded in H1 2023.