OUE dips into the red with S$114.6 million loss for H1
This is mainly from a S$47 million impairment linked to an associate affected by China’s property downturn
Real estate and healthcare conglomerate OUE reported a loss of S$114.6 million for the first half of 2026, marking a shift from a net profit of S$35.6 million in the same period last year. This decline was primarily driven by a S$47 million impairment loss on its investment in Hong Kong-based residential property management firm, Gemdale Properties and Investment (GPI). OUE's stake in GPI stands at 31.9 percent and the Hong Kong firm has been struggling due to the prolonged downturn in China's property market.
The company further attributed the loss to a higher proportion of losses from equity-accounted investees, including GPI, which totaled S$53.2 million. Nevertheless, this was somewhat offset by a reduction in financing costs. OUE did not anticipate any significant impact on their operational cash flows and corporate funding requirements as the impairment loss and equity-accounted investee losses were considered non-cash.
For the same period, OUE's revenue grew by 5.3 percent to S$308.3 million. Despite the overall decline in earnings, the per-share loss narrowed to S$0.1526 from S$0.047 in the previous year. Revenue growth was attributed to improvements across all business segments, with real estate revenue up 5.5 percent to S$205.1 million, driven by a 10.4 percent increase in the hospitality division.
The healthcare division's revenue remained stable at S$75.4 million, while other businesses reported a 20.8 percent increase to S$27.8 million.
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