Its revenue fell after the sale of the extension to Crowne Plaza Changi Airport.
OUE Limited’s profits fell 31.5% YoY from $144.36m to $98.87m in 2017. OCBC Investment Research noted that OUE’s 2017 revenue fell 14.7% to $754.1m, weighed down by the disposal of the extension to Crowne Plaza Changi Airport (CPEX) to OUE Hospitality Trust in 2016.
Excluding the non-recurring revenue of $205m generated from this, the group recorded $74.9m higher revenue.
Revenue from the Investment Properties Division increased 2.4% to $271m due mainly to rental income from OUE Downtown office towers and Downtown Gallery, the latter having commenced operations in May 2017.
Revenue from the hospitality division increased $18.4m or 9.12% to $220.1m, thanks to both Mandarin Orchard Singapore and CPEX, as well as Oakwood Premier OUE Singapore, the serviced apartments at OUE Downtown, which opened in June 2017. Analysts suggested that this division has potential deals in Singapore and key global gateway cities.
EBIT fell 39.5% to $166.1m, but this was due mainly to the provision for legal and related expenses of $46m recorded by OUE Lippo Healthcare, apart from the one-off gain on the disposal of CPEX.
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