OUE reported Friday its first quarter net profit rose 0.3 percent on-year to S$1.03 million amid changes to accounting standards for leases.
Revenue for the quarter increased 1.2 percent on-year to S$147.30 million, the developer said in a filing to SGX.
“The increase was mainly due to higher contributions from the group’s investment properties and development property divisions, offset partially by lower contributions from the hospitality and healthcare divisions,” OUE said.
Earnings before interest and tax (EBIT) increased 13.6 percent on-year to S$62.0 million for the quarter, the filing said. That was mainly on contributions from First REIT and Bowsprit Capital, which were acquired in October 2018, and on higher contribution from Oakwood Premier OUE Singapore, OUE said.
The investment properties division posted a 2.8 percent on-year increase in revenue to S$71.5 million for the quarter, mainly on higher occupancy at the US Bank Tower, OUE said.
Development property revenue was S$7.2 million on the completion of some OUE Twin Peaks units sold under deferred payment plans, the filing said.
Hospitality revenue fell by S$2.6 million to S$56.3 million in the quarter on lower room revenue and banquet sales at Mandarin Orchard Singapore, partly offset by higher contributions from Oakwood Premier OUE Singapore, which is the serviced residence component at the OUE Downtown development, the company said.
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