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OUE announces special dividend for 60th anniversary, FY2023 net profit falls 57%

The Edge Singapore
·2-min read

OUE announces special dividend for 60th anniversary; FY2023 net profit falls 57%

OUE reported net profit attributable to shareholders of $81.1 million in FY2023 for the year ended Dec 31, 2023, down 57.3% y-o-y, despite a 26.9% rise in revenue to $673.1 million. The decline was mainly due to lower share of results of equity-accounted investees, higher fair value losses recognised for investment properties, higher net finance expenses, and lower net write-back of impairment losses recognised on property, plant and equipment, partially offset by higher net change in fair value of investments designated at fair value through profit or loss, the company said in a statement.

Much of OUE Lj3's revenue and earnings is derived from its 48.7% stake in OUE Commercial REIT Ts0u, its 32.6% stake in First REIT, and its 70.3% share of OUE Healthcare.

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Revenue from the real estate segment grew 25.5% to $419.9 million because of an 8.1% rise in contributions from investment properties. Revenues from OUE's hospitality segment jumed 44% to $142.6 million. OUE benefitted from its stakes in OUE Commercial REIT which owns Hilton Singapore Orchard and Crowne Plaza Changi Airport. HSO was fully reopened in January 2023.

The healthcare segment saw revenue grow 32.4% to $162.1 million in FY2023. This was largely due to a full year contribution from First REIT, as well as the O2 Healthcare Group acquisition by OUE Healthcare in June 2022.

Share of results of equity-accounted investees declined by 72.5% to $43.2 million in FY2023 because of lower contributions from Gemdale Properties and Investment Corporation. This was partially offset by higher contribution from joint venture company Auric Digital Retail which holds PT Matahari Department Store Tbk.

OUE announced a special dividend 2 cents in celebration of its 60th anniversary, along with a 1 cent final dividend. Together with an interim dividend of 1 cent, OUE's total dividend of 4 cents translates into a yield of 3.8%. OUE ended Feb at $1.04, a steep discount to its net asset value of $4.31.

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