OUE Limited returned to the black in the six months ended Jun 30, posting a net profit of S$62.4 million against a S$81.6 million loss a year earlier, helped by firmer contributions from its hospitality portfolio and a steep fall in finance costs.
Earnings per share moved back into positive territory at 4.7 Singapore cents, compared with a loss of 15.3 cents in the prior‐year period. The board declared an interim cash dividend of one Singapore cent per share, unchanged from last year, payable on Sept 30 to shareholders on record as at Sept 16.
Group revenue increased 5.3 per cent year-on-year (YoY) to S$308.3 million. The hospitality division led the improvement, with turnover up 10.4 per cent to S$109.5 million on higher revenue per available room at Hilton Singapore Orchard and Crowne Plaza Changi Airport amid stronger corporate and meetings demand. Investment properties and fund-management income was steady at S$95.5 million, while healthcare revenue inched up 0.1 per cent to S$75.4 million. Food-and-beverage operations under the “Others” segment added S$27.8 million, a 21 per cent YoY rise, helped by new outlets.
Pre-tax earnings before interest and other gains or losses (adjusted EBIT) slipped 11.7 per cent to S$48.6 million, pressured by a wider S$53.2 million share of losses from associates and joint ventures. The group booked a S$47 million impairment on its investment in Chinese property developer China Merchants Guangzhou Properties Investment (GPI) as market conditions on the mainland remained weak. A S$2.9 million goodwill write-down in the healthcare segment added to non-cash charges.
Finance expenses fell 25 per cent to S$64.8 million, reflecting lower borrowing costs, while revenue expansion and cost discipline underpinned operating performance. Segment-wise, investment properties and fund management delivered S$68.1 million of pre-tax profit (up 3.7 % YoY) and hospitality contributed S$23.4 million (up 30 %), offsetting a S$60.7 million loss at development properties. Healthcare posted S$25.5 million, down from S$38.1 million a year earlier.
Looking ahead, OUE noted that Singapore’s office market remains supported by tight Grade A supply and steady demand, while the hospitality sector is expected to benefit from government-led tourism initiatives despite softening visitor numbers. The group said it holds sufficient liquidity – with S$430.3 million in undrawn credit lines as at Jun 30 – to meet upcoming debt maturities and will maintain a “prudent capital management” stance amid heightened macro-economic uncertainty. Recent moves include the S$176.5 million purchase of a 19.9 per cent stake in Sydney’s Salesforce Tower and the planned divestment of 11 Indonesian hospital assets from First REIT, which received unitholder approval in June.
The company added that its diversified portfolio of prime commercial, hospitality and healthcare assets should “provide stable performance” over the remainder of 2026, though it cautioned that global economic headwinds and currency volatility remain key challenges.