The group&rsquo s half-year revenue is down at S$324.3 million from S$332 million the year before

 

[SINGAPORE] OUE reported a loss of S$314.7 million in H2 FY2025, 65 per cent more than the S$190.7 million in red ink in the preceding financial year.    

 

The real estate and healthcare group on Friday (Feb 27) reported a drop in half-year revenue to S$324.3 million from S$332 million the year prior. 

 

It attributed the drop to a lower contribution from the real estate segment, from the absence of Lippo Plaza Shanghai&rsquo s contribution following its divestment in December 2024. 

 

The board proposed a dividend of S$0.01 a share together with the interim dividend of S$0.01 a share, the total cash dividend for the year would be S$0.02 per share, subject to shareholders&rsquo approval.

 

Factoring in the S$35.6 million in profit booked in H1, FY2025 losses came in at S$279.1 million, narrower by 2.7 per cent from the S$286.8 million loss previously. 

 

This came mainly from the absence of a fair-value loss recognised for Lippo Plaza Shanghai from its divestment, and lower finance expenses. 

 

This was partially offset by a higher share of losses from its associated company, Gemdale Properties and Investment Corporation (GPI), and a S$20 million impairment loss on its investment in GPI.

 

Revenue for the full year fell 4.6 per cent to S$617 million, from S$646.5 million in FY2024. This was the result of lower contributions from the real estate segment, including the absence of contributions from the divested Lippo Plaza Shanghai, though this was partially offset by higher contributions from the commercial portfolio in Singapore.

 

As a result, the group&rsquo s investment properties and fund management division recorded a 7.4 per cent decline in FY2025 revenue to S$192.2 million, from S$207.5 million in FY2024. 

 

OUE partners Tokyo Century to develop new hotel at Changi Airport&rsquo s T2

 

Revenue from the hospitality division was 4.4 per cent lower in FY2025 at S$220 million, from S$230.2 million in FY2024. This was due to a higher base from the previous year&rsquo s surge in concert-driven tourism and the commencement of the visa-free arrangement between Singapore and China.

 

The FY2025 revenue for the healthcare segment grew 0.3 per cent to S$152.7 million from S$152.2 million in FY2024, on the back of a stronger performance from specialist clinics in Singapore and contributions from its newly acquired cardiopulmonary physiotherapy business. 

 

However, this was partially offset by depreciation of the rupiah and the yen against the Singapore dollar, and the absence of contribution from the closure of a pharmaceutical distribution business in China.

 

Revenue from the company&rsquo s &ldquo others&rdquo segment for FY2025 &ndash primarily contributions from its food and beverage operations &ndash came in at S$52 million, up 9.8 per cent from the S$47.4 million in FY2024.

 

This   increase was mainly driven by contributions from newly opened dining outlets and the full-year contribution from the dining concepts launched in 2024.

 

In late December 2025, the group strengthened its healthcare portfolio with the acquisition of an additional 19.32 per cent stake in OUE Healthcare, increasing its total interest to 89.68 per cent.

 

In a bourse filing, OUE said that the global and domestic economic environment remains challenging against the backdrop of heightened trade tensions and policy uncertainty. 

 

Its portfolio, comprising commercial properties, hospitality and retail assets, as well as its healthcare segment, is expected to provide a stable performance in 2026. 

OUE has acquired the entire 19.32% stake held by its partner Itochu in OUE Healthcare at 2.4 cents per share, or $20.7 million.

 

Back in 2018, Itochu invested $78.75 million in OUEH.

 

The agreed transaction price is a slight discount off OUEH' s last traded price of 2.6 cents on Dec 15.

 

Upon completion of the deal, likely on Dec 24, OUE' s stake in OUEH will increase to 89.68%.

 

OUE says this transaction lets it raise its stake in OUEH at a discount to the market price.

 

It is also " in line with the group' s commitment to the longer-term prospects of OUEH' s healthcare business.

 

" The transaction will also allow OUEH to focus on executing its longer term business plan with the firm support of its key stakeholder," says OUE.

 

OUEH, via a JV, owns a 60% stake in specialist healthcare chain O2 Healthcare Group.

 

It holds 27% in Healthway Medical Corporation, which runs over 130 clinics.

 

In China, via JV or on its own, OUEH runs 3 hospitals while in Myanmar, it holds a 40% stake in the Pun Hlaing Hospitals.

But revenue declines 6.9% to US$292.8 million, from S$314.5 million the year before

 

[SINGAPORE] OUE recorded a net profit of S$35.6 million for the first half of 2025, reversing from the S$96.1 million loss in the year-ago period. 

 

The real estate and healthcare group on Thursday (Aug 14) said the turnaround was due mainly to S$94.9 million in provisional negative goodwill recognised for the acquisition of additional equity interests in an equity-accounted investee. It also cited higher adjusted earnings before interest and taxes, as well as greater finance income. 

 

However, H1 revenue fell 6.9 per cent to US$292.8 million, from S$314.5 million in the same period the year before. 

 

&ldquo This was mainly due to lower contribution from the group&rsquo s real estate segment, which decreased 9.7 per cent to S$194.5 million from S$215.4 million in H1 2024,&rdquo OUE said. 

 

In the latest period, the group&rsquo s investment properties and fund management division recorded an 8.5 per cent decline in revenue to S$95.1 million. This was attributed largely to the absence of contributions from Lippo Plaza Shanghai, which was divested last December. 

 

Hospitality division revenue was 9.8 per cent lower at S$99.2 million in H1 2025, following a high base in 2024 which was driven by several high-profile events and concerts in Singapore, as well as the start of the visa-waiver arrangement between the city-state and China. 

 

Softer travel demand and consumer spending, ongoing macroeconomic headwinds and geopolitical tensions also weighed on the performance in H1 2025.

 

OUE&rsquo s healthcare segment revenue was S$75.3 million, comparable with the S$76.3 million in H1 2024. 

 

The group&rsquo s other revenue segment &ndash primarily contributions from its food and beverage operations &ndash recorded S$23 million in H1, up slightly from the S$22.8 million the year before. 

 

OUE said: &ldquo While dining concepts launched last year contributed for the full period, this was offset by softer consumer demand amid macroeconomic uncertainties and market saturation.&rdquo  

 

The group reported earnings per share of S$0.047 in H1 2025, as opposed to a loss per share of S$0.1142 in H1 2024. 

 

An interim dividend of S$0.01 per share was declared, unchanged from that in the year-ago period.

 

&ldquo Despite the challenging backdrop, the group&rsquo s portfolio, comprising prime and strategically located commercial properties with a diversified tenant base, hospitality and retail assets, as well as the complementary healthcare segment, is expected to provide stable performance in 2025,&rdquo OUE said. 

 

OUE has paid HK$146.4 million ($24.5 million) to raise its stake in its Hong Kong-listed associate Gemdale Properties and Investment Corp.

 

According to OUE on May 12, it paid 28 HK cents per share in cash for 530 million GPI shares.

 

This brings OUE' s stake in GPI from 25.88% to 29.07%.

 

As at Dec 31 2024, GPI had an NTA of HK$1.14 per share.

 

OUE says the acquisition has no material impact on its own NTA, which was $4.16 as at Dec 31 2024.

 

OUE says the current share price of GPI does not fully reflective of China' s and Gemdale' s long-term potential in the country' s real estate sector.

 

The further investment allows OUE to " maintain access and exposure" to the real estate market in China and provide itself a continued opportunity to leverage on future potential collaborations and partnerships with the GPI group.

 

OUE shares closed at 95 cents on May 9, up 0.53% for the day but down 6.86% year to date.

Between Apr 7 and 11, OUE executive chairman and group CEO Stephen Riady increased his deemed interest from 72.93 per cent to 73.08 per cent. This was through Lippo Assets (International) Limited acquiring 847,000 shares at an average price of S$0.91 per share, and Hongkong Chinese Limited (HCL) acquiring an aggregate of 347,100 shares at an average price of S$0.94 per share. Appointed executive chairman in Mar 2010, his role expanded to include group CEO in January 2020. He has been serving as executive director since November 2006. As group CEO, Dr Riady provides strategic direction and has overall responsibility for the management, organisation, operation, and development of the group and all related matters.

 

On Mar 25, OUE announced it had entered a joint venture to develop Hotel Indigo Changi Airport with a wholly owned subsidiary of Tokyo Century Corporation (Tokyo Century). The hotel is expected to be completed and fully operational by 2028. OUE was awarded the tender by Changi Airport Group (CAG) for the lease and development of the new hotel at Changi Airport Terminal 2 in April 2024. Tokyo Century is a leading Japanese non-banking financial services company listed on the Tokyo Stock Exchange. 

 

Dr Riady maintains that the joint venture aligns with OUE&rsquo s &ldquo asset right&rdquo strategy to optimise capital deployment and grow its third-party funds under management over time, in addition to paving the way for OUE to build a strategic partnership with Tokyo Century to explore future potential opportunities. He also maintains that the proposed 255-key Hotel Indigo Changi Airport will be Singapore&rsquo s first zero-energy hotel, and will feature an innovative sustainability-centric design and cutting-edge energy-efficient solutions, including solar photovoltaic panels, hybrid cooling systems, naturally ventilated corridors, and rainwater harvesting. OUE also said that the development aligns with Singapore&rsquo s broader efforts to enhance its sustainable tourism infrastructure, and that it is also in line with the group&rsquo s sustainability commitment. 

 

OUE Limited&rsquo s executive chairman and group CEO, Stephen Riady, has increased his stake in the company on several occasions.

 

On April 8, Riady acquired 479,000 shares for $443,362.50 or 92.5 cents per share via market transaction. The shares were acquired by Lippo Assets (International) Limited (LAIL).

 

Riady has a 100% stake in Lippo Capital Group Limited (LCG), which is the holding company of Lippo Capital Holdings Company Limited (LCH). LCH, in turn, is the intermediate holding company of LAIL.

 

On April 14, Riady, via Hongkong Chinese Limited (HCL), bought 15,000 shares in OUE for $14,153.90 on the open market, or at 94.36 cents apiece. LCH is also the intermediate holding company of HCL.

 

On April 15, Riady bought another 4,800 shares through HCL for $4,512, or 94 cents per share.

 

On April 16, the executive chairman and group CEO purchased 24,400 shares in OUE for $22,931.25 or 93.98 cents. The shares were, again, bought via HCL.

 

Following the purchases, Riady has a total of 552.83 million shares, or a stake of 73.09%, in OUE Limited.

 

For the FY2024 ended Dec 31, 2024, OUE Limited made a loss of $286.8 million compared to earnings of $81.1 million in the year before. The loss was mainly due to the lower share of results of equity-accounted investees and higher fair value losses recognised on investment properties.

It paves the way for the two to pursue future real estate opportunities, says deputy CEO of OUE

 

[SINGAPORE] Property developer OUE : LJ3 0% has formed a joint venture (JV) with Japanese non-banking financial services company Tokyo Century to develop the new 255-key hotel located at Changi Airport&rsquo s Terminal 2 (T2). 

 

Under the JV, both will contribute capital to help fund the development of the project, Hotel Indigo Changi Airport. OUE Capital Management, the group&rsquo s wholly owned subsidiary, will be appointed as the hotel&rsquo s development and asset manager. 

 

OUE will own a 51 per cent stake in another wholly owned subsidiary, RD Hotel Holdings, which will head the lease and development of the hotel. TC Realty, a wholly owned subsidiary of Tokyo Century, will own the remaining 49 per cent.  

 

In a statement on Tuesday (Mar 25), OUE deputy chief executive officer and executive director Brian Riady said that the move is in line with the group&rsquo s &ldquo asset right&rdquo strategy to optimise capital deployment and grow its third-party funds under management over time. 

 

He added: &ldquo It also paves the way for a strategic partnership between OUE and Tokyo Century to pursue future real estate opportunities in Singapore and beyond.&rdquo

 

The property developer noted that the Tokyo-listed company has been actively engaged in the hotel business since 2016. This includes the development and management of ANA InterContinental Beppu Resort & Spa in Oita prefecture and the upcoming luxury hotel Dorchester Collection in Tokyo. 

 

Yoichiro Nakai, Tokyo Century deputy president and executive officer, added that the company has expertise in solar-power generation and sustainable energy solutions, which will help to develop Hotel Indigo Changi Airport &ndash Singapore&rsquo s first zero-energy hotel.

 

OUE was awarded the tender for the project in April 2024, with a 58-year strata sublease until Aug 29, 2083 &ndash based on a handover date of no later than 12 months from the date the tender was awarded. 

 

The hotel is expected to be completed and fully operational by 2028, said OUE. It does not expect the JV to have any material effect on the group&rsquo s net tangible assets or earnings per share for the current financial year ending Dec 31, 2025. 

 

 

OUE, which has interests in property, hospitality and healthcare, has warned that it will report a loss for its FY2024, which will reverse from earnings of $81 million reported for the preceding FY2023 ended Dec 31 2023.

 

The company attributes the expected losses to its share of losses from its 25.9%-held associate, Hong Kong-listed Gemdale Properties and Investment Corp.

 

According to Gemdale' s Feb 14 statement to the Hong Kong Exchange, it expects to incur a loss of between RMB4.2 billion and RMB4.8 billion for its FY2024.

 

Gemdale attributes the poorer showing to lower margins from development projects decrease in share of profits from projects and a " substantial increase" in impairment losses for properties under development and held for sale.

 

This means OUE' s share of losses from Gemdale will be between $195 million and $223 million.

 

OUE says its overall net fair value losses on its investment properties will be around $79 million compared to an overall net fair value loss of $24 million recorded for FY2023. 

Issuance will be consolidated with property player&rsquo s existing S$150 million in green notes, which were issued on Oct 8, to form a single series

AN OUE subsidiary, OUE Treasury, has proposed to issue S$50 million in green notes due 2029 at a fixed rate of 4 per cent per annum, the property player said on Tuesday (Oct 22).

 

The green notes are part of OUE&rsquo s S$3 billion multicurrency debt issuance programme, established in 2016.

 

This issuance will be consolidated with OUE&rsquo s existing S$150 million in green notes, which were issued on Oct 8, 2024, to form a single series.

 

OUE expects the notes to be issued on Oct 29, and &ndash unless previously redeemed or purchased and cancelled &ndash mature on Oct 8, 2029.

 

This tranche of notes will be offered at an issue price of 99.998 per cent of their principal amount, plus accrued interest from, and including, Oct 8 to, but excluding, Oct 29, and in denominations of S$250,000.

 

Interest is payable semi-annually in arrear on Apr 8 and Oct 8 each year, commencing on Apr 8, 2025.

 

Net proceeds from the issuance will be applied exclusively to finance or refinance, in whole or in part, new or existing green projects that meet eligibility criteria, OUE said.

 

DBS, OCBC and the Singapore branches of CIMB and HSBC are the joint lead managers and bookrunners, while CIMB, HSBC and OCBC are the joint green finance structuring banks.

OUE says the group&rsquo s wholly-owned subsidiary, OUE Treasury, has issued its first green notes of $150 million due 2029, according to an Oct 8 release. 

 

The notes were issued under the group&rsquo s $3 billion multicurrency debt issuance programme, which was established on Nov 30, 2016. 

 

On Oct 1, the group announced that the notes carry an issue price of 100% of their principal amount and in denominations of $250,000. 

 

The notes are set to bear an interest rate of 4.0% per annum, and interest on the notes will be payable semi-annually in arrear on April 8 and Oct 8 in each year. The notes are expected to mature on Oct 8, 2029. 

 

The Singapore branch of CIMB Bank Berhad, Oversea-Chinese Banking Corporation Limited (OCBC) and the Singapore branch of The Hongkong and Shanghai Banking Corporation Limited, have been appointed joint lead managers, bookrunners of the offering of the notes. 

 

According to the group, the net proceeds from the notes will go towards financing or refinancing new or existing eligible green projects that meet the eligibility criteria in accordance with OUE Limited&rsquo s green finance framework. 

 

With a final orderbook of $225 million at a price guidance of 4.0%, the group adds that the notes were oversubscribed by 1.5 times. The deal has since been allocated to a range of accounts comprising fund managers, banks and private banks, at 46%, 15% and 39% respectively. 

 

Post-issuance, OUE has no refinancing requirements until September 2026.

 

Currently, OUE is also in the midst of developing Hotel Indigo Changi Airport at Terminal 2, an upscale lifestyle hotel in the Changi Airport and Changi Business Park precinct. 

 

The group says the hotel is designed to be the first &ldquo zero-energy&rdquo hotel in Singapore and potentially the first &ldquo zero-energy&rdquo airport hotel in the world. 

 

Hotel Indigo, which is expected to commence operations in 2028, is set to achieve the BCA Green Mark Platinum Zero Energy Building standard and will be funded in part by the net proceeds of the issuance of the notes.

 

Brian Riady, deputy CEO and executive director of OUE, says: &ldquo We have achieved multiple objectives with this highly successful transaction, including the establishment of the framework that is aligned with the green criteria of the Singapore-Asia taxonomy and the completion of our inaugural green notes issuance. 

 

He adds: &ldquo In addition, the framework and green notes form important parts of OUE Real Estate&rsquo s environmental, social, governance (ESG) 2030 Vision to include more than 90% of our financing in sustainable-linked formats. 

Revenue for the period is up 3.3% at S$314.5 million

OUE : LJ3 +0.98% has sunk into the red with a net loss of S$96.1 million for its first half ended Jun 30, compared with a net profit of S$40.2 million in the previous corresponding period.

 

This was mainly due to share of losses contributed by 25.2 per cent-owned investee company Gemdale, whose principal activities in mainland China were hit by the property market slowdown and the current economic environment, said the real estate and healthcare group in a regulatory filing on Monday (Aug 12).

 

Profits also took a hit from higher finance expenses, tax expenses and lower net change in fair value of investments designated at fair value through profit or loss, the company added.

 

Loss per share stood at 11.42 Singapore cents for the half-year period, from earnings per share of 4.75 cents the previous year.

 

Revenue for H1 rose 3.3 per cent to S$314.5 million, from S$304.5 million a year earlier. This was due to higher contributions from its real estate and &ldquo others&rdquo business segments.

 

The real estate segment grew 5.1 per cent on year to S$215.4 million, due to higher revenue from the investment properties and fund management and hospitality business divisions.

 

The &ldquo others&rdquo segment, which includes contributions from food and beverage operations, saw revenue rise 15.8 per cent to S$22.8 million due to contributions from a new dining concept that was launched in the fourth quarter of 2023.

 

An interim dividend of one Singapore cent per share was declared for the half year, unchanged from the year before. The dividend will be paid out on Sep 26, after books closure on Sep 12.

Group expects red ink of S$92 million to S$106 million from investee firm it owns 25.2% of

 

PROPERTY developer OUE : LJ3 -0.84% expects to record a net loss for the first six months ended Jun 30, 2024, reversing a net profit of S$40.2 million in the same period last year. 

 

The group attributed its performance to estimated losses from an investee company which OUE owns 25.2 per cent of. Its business in China was adversely affected by the prevailing slowdown in the property market and the current economic environment there, said OUE in a bourse filing on Friday (Jul 19). 

 

The investee company, Gemdale Properties and Investment Corporation (GPI), announced the same day that it is expecting to record a net loss of around 2 to 2.3 billion yuan (S$370 million to S$425.5 million) for H1 FY2024. 

 

This is due to a share of loss from joint ventures, as well as an increase in impairment losses for properties under development during the period, said GPI. 

 

OUE&rsquo s share of results from GPI is therefore predicted to be a loss ranging from S$92 million to S$106 million, compared to a S$19 million profit in H1 FY2023. 

 

But the losses are non-cash in nature and there is no material impact on OUE&rsquo s operational cash flows and corporate funding requirements, it said. 

 

More volatility, uncertainty for markets in H2 as chances of Trump presidency increase: analysts

The group&rsquo s unaudited financial results for the first half of FY2024 will be released on or before Aug 14.