OUE profits down 90% to $10.7m in Q3

The sales performance of OUE Twin Peaks turned sour.

OUE Limited (OUE) profits crashed 90% YoY from $107.6m to $10.7m in Q3.

According to its financial statement, revenue fell 56.6% YoY from $419.1m to $181.9m. The decrease was mainly due to the $205m non-recurring revenue recorded on the sale of the extension to Crowne Plaza Changi Airport (CPEX) to OUE Hospitality Real Estate Investment Trust last year, and lower contribution from OUE Twin Peaks.

Hospitality income rose to $58.6m, from $52.4m in 3Q 2016, driven by higher revenue from both Mandarin Orchard Singapore and the enlarged Crowne Plaza Changi Airport, as well as contribution from Oakwood Premier OUE Singapore, which opened in June 2017.

Revenue from OUE Twin Peaks fell to $38.5m due to fewer sales completed in the current quarter. As of October 2017, OUE Twin Peaks is fully sold.

OUE recognised revenue of $11.3m from the Healthcare division in Q3, contributed by OUE Lippo Healthcare Limited, which became a subsidiary on 2 March 2017. OUE Lippo Healthcare Limited derives its revenue from rental income from its nursing facilities in Japan, and from the operation of a hospital in Wuxi, Jiangsu, China.