OUE dips into the red with S$114.6 million loss for H1

SINGAPORE, 15 AUGUST 2026 —

OUE Posts S$114.6 Million Loss in H1 as China Property Slump Weighs on Associate

In a filing to the Singapore Exchange on Friday, the mainboard-listed company attributed the loss primarily to a S$47 million impairment on its 31.9% stake in GPI, a Hong Kong-based residential property management firm. OUE said GPI remains "adversely impacted by the prolonged downturn" in China’s property market, which has weighed on its financial performance.

The group’s share of losses from equity-accounted investees, including GPI, widened to S$53.2 million in H1 2026 from S$46 million a year earlier. While financing costs eased, the impairment and higher losses from associates pushed OUE into the red. The group noted that these charges were "largely non-cash in nature" and expected "no material impact on the group’s operational cash flows and corporate funding requirements."

Despite the loss, OUE proposed an unchanged interim dividend of S$0.01 per share, payable on Sept 30. Revenue rose 5.3% year-on-year to S$308.3 million, driven by growth across all business segments. Earnings per share fell to a loss of S$0.1526 from a profit of S$0.047 in H1 2025.

Real Estate and Hospitality Drive Revenue Growth OUE’s real estate segment, which contributed S$205.1 million to revenue, saw a 5.5% increase, supported by a 10.4% rise in hospitality revenue to S$109.5 million. The group highlighted stronger performance at its Singapore properties, including Hilton Singapore Orchard and Crowne Plaza Changi Airport, where revenue per available room improved due to "resilient travel demand" and meetings and events activity in early 2026.

The healthcare division reported stable revenue of S$75.4 million, nearly unchanged from S$75.3 million in H1 2025. Other businesses, including dining outlets, saw a 20.8% revenue jump to S$27.8 million, aided by a new outlet opened during the period and full-period contributions from outlets launched in 2025.

Regional Exposure: Singapore Strong, China Cautious OUE maintained a positive outlook for Singapore’s real estate market, citing the country’s economic growth, rising Grade A office rents, and limited supply of quality office space. The group expects the office market to remain "landlord favourable" in 2026, with Singapore’s safe-haven status supporting demand despite an anticipated dip in tourism following a record year in 2025.

Internationally, OUE holds a 19.9% stake in Salesforce Tower, a 55-storey prime freehold commercial building in Sydney, Australia. The group views the property as well-positioned to benefit from strong demand for high-quality office space.

In contrast, OUE expressed caution over China’s economic outlook, noting that the country’s Q2 2026 GDP growth of 4.3% was the slowest in over three years and below the government’s target of 4.5% to 5%. "Looking ahead, geopolitical volatility will continue to pose uncertainties for China’s growth outlook," the group stated.

Stakeholder Reactions and Market Impact Industry analysts noted that while OUE’s impairment reflects broader challenges in China’s property sector, its Singapore-focused businesses remain resilient. "The impairment is a reflection of the ongoing stress in China’s real estate market, but OUE’s Singapore operations are performing well," said a property analyst who declined to be named.

Investors will likely focus on OUE’s ability to sustain revenue growth in Singapore and manage its exposure to China. The unchanged interim dividend may provide some reassurance, though the loss underscores the challenges posed by external economic headwinds.

Forward Outlook: Balancing Growth and Risk OUE’s management highlighted that while the group remains cautious on China, its Singapore-centric strategy and diversified portfolio—spanning real estate, hospitality, and healthcare—position it to navigate current uncertainties. The group’s focus on high-quality assets, such as Salesforce Tower in Sydney, suggests a preference for markets with stable demand.

For Malaysia, OUE’s performance may serve as a case study in managing regional risks, particularly for companies with exposure to China’s property downturn. The group’s ability to offset losses with growth in Singapore could offer insights for regional peers facing similar challenges.

As OUE prepares to pay its interim dividend in September, the market will watch closely for signs of recovery in China and sustained strength in Singapore’s real estate sector. With geopolitical risks persisting, the group’s ability to adapt to shifting economic conditions will be critical in the coming quarters.

Related: Singapore