OUE to Report FY2024 Red Ink From Lower Margins, Impairment In HK-Listed Associate
Overall net fair value losses on its investment properties will be around $79 million for FY2024
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.
OUE shares closed at $1 on Feb 14, down 7.41% in the past 12 months.
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