OUE's net profit crippled by higher operating costs in 3Q

PATMI was also 43.9% lower.

According to Phillip Securities Research, higher operating expenses, higher finances expenses due to higher interest cost from more borrowings, a non-recurring loss on disposal of two China hotels and revaluation of investment properties impacted 3Q13 net profit 37.2% lower y-y (PATMI 43.9% lower y-y) .

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OUE Ltd is currently exploring the potential listing of OUE Commercial Trust, with initial portfolio to include its OUE Bayfront property and Shanghai Lippo Plaza. OUE Bayfront and Lippo Plaza are valued at approximately S$1.081 mn and RMB 2.0 bn (S$415 mn) respectively.

Despite OUE having spun off two of its assets Mandarin Orchard Singapore and Mandarin Gallery to OUE H-Trust in July 2013, OUE H Trust continues to consolidate this entity as OUE retains control.

Mandarin Orchard Singapore continues to be held at cost within OUE’s balance sheet at Group Level.