This is mainly from a S$47 million impairment linked to an associate affected by China’s property downturn
[SINGAPORE] Real estate and healthcare group OUE swung into the red for the six months ended Jun 30 with a loss of S$114.6 million, from a net profit of S$35.6 million a year earlier.
In a bourse filing on Friday (Aug 14), the mainboard-listed company said this arose from an impairment loss of S$47 million recognised on its investment in Gemdale Properties and Investment (GPI).
GPI is a Hong Kong-headquartered residential property management company, in which OUE owns a 31.9 per cent stake.
The group said that GPI “continues to be adversely impacted by the prolonged downturn” in China’s property market.
OUE said its net loss was “further deepened by a higher share of losses from equity-accounted investees” including GPI, though this was partly mitigated by reduced financing costs.
The group’s share of results from equity-accounted investees in H1 came in at a loss of S$53.2 million, worsening from the S$46 million loss recorded a year earlier.
OUE noted that the GPI impairment loss and losses from equity-accounted investees were “largely non-cash in nature”, adding that it “does not expect any material impact on the group’s operational cash flows and corporate funding requirements”.
An interim dividend of S$0.01 per share has been proposed, unchanged from that for the year-ago period. This will be paid out on Sep 30.
Revenue was up 5.3 per cent at S$308.3 million in H1. On a per-share basis, the loss was S$0.1526, reversing from earnings per share of S$0.047 a year earlier.
OUE attributed the uptick in revenue to “improved contributions across all business segments”.
Real estate revenue was up 5.5 per cent at S$205.1 million, thanks to “strong growth” in its hospitality division, where revenue increased 10.4 per cent to S$109.5 million.
Hilton Singapore Orchard and Crowne Plaza Changi Airport had higher revenue per available room, due to “resilient travel demand” and meetings and events in the first quarter of 2026.
The group’s healthcare division recorded revenue of S$75.4 million, stable against the S$75.3 million from a year earlier.
Its other businesses saw a 20.8 per cent jump in revenue to S$27.8 million, thanks to a newly opened dining outlet during the period and the full-period contribution from dining outlets opened in 2025.
OUE has a positive outlook on Singapore. It noted the Republic’s growing economy, as well as the continued climb of Grade A office rents and a scarcity of available quality space.
The office market is expected to remain “landlord favourable” in 2026, while Singapore’s safe-haven status will continue to support demand. This is paired with an expected dip in tourism, following a record year for the sector in 2025.
Elsewhere, OUE has invested in Salesforce Tower, a 55-storey prime freehold commercial tower in Sydney, Australia, with a 19.9 per cent stake. The group believes the property is “well positioned to benefit from the strong demand for high-quality office space”.
It has a less rosy outlook on China, noting the country’s Q2 economic growth of 4.3 per cent being the slowest in more than three years and falling short of the government’s 4.5 to 5 per cent target.
“Looking ahead, geopolitical volatility will continue to pose uncertainties for China’s growth outlook,” it added.
Shares of OUE rose 1 per cent or S$0.01 to close at S$0.985 on Friday, before the results were announced.
