http://www.businesstimes.com.sg/sub/...05540,00.html?

Published November 11, 2010

PROPERTY EARNINGS

OUE posts net profit of $127.3m for Q3

By TEH SHI NING


OVERSEAS Union Enterprise yesterday posted a third-quarter net profit of $127.3 million.

The surge in earnings attributable to equity-holders from $7.8 million a year ago was helped by a fair value gain of $128.4 million on investment properties for the three months ended Sept 30.

The property developer and hotel operator said that revenue rose 53 per cent to $51.2 million for the quarter, from $33.5 million a year ago. This resulted in operating profit rising to $19.4 million from $3.5 million.

An improved global economy led to better performance from its hospitality division and contributions from Mandarin Gallery which opened in November 2009 helped lift revenues too, OUE said. Gross profit thus more than doubled to $29.1 million for Q3.

Earnings per share jumped 12 cents from a year back to 13 cents for the quarter. Its net asset value per ordinary share also rose to $2.38 as at Sept 30, from $2.07 as at Dec 31 last year.

Cash and cash equivalents stood at $193.3 million as at Sept 30, compared to $115.6 million at the end of Q3 last year.

Turning to its various business divisions, OUE's hospitality revenue rose 29 per cent to $42.4 million for Q3, as Mandarin Orchard Singapore's revenue per available room (RevPAR) rose 35.8 per cent to $216 for Q3 from the previous year.

The group's property investments division also logged rental income of $8.2 million for Q3, from the Mandarin Gallery.

Overseas Union House/ Change Alley Aerial Plaza is still undergoing redevelopment, but is expected to be completed in the first quarter of 2011. The group said that it would continue to pre-lease the property, for which 22 per cent of its net lettable area has been pre-committed.

Its acquisition of DBS Towers One and Two also did not bring in income for Q3 as it was only completed on Sept 30, but is expected to contribute from Q4 onwards.

The group launched sales of units from its high-end condo development at Leonie Hill Road, Twin Peaks in September.

OUE shares closed four cents down at $3.41 yesterday.