OUE Commercial REIT reports 1Q19 net property income rose around 24 percent

The OUE Downtown building in Signapore’s central business district. Credit: Shenton WireThe OUE Downtown building in Signapore’s central business district. Credit: Shenton Wire

OUE Commercial REIT reported Thursday its first quarter net property income rose 23.5 percent on-year to S$43.6 million on the contribution from the office components of OUE Downtown, which were acquired in November.

Revenue for the quarter ended 31 March rose 25.5 percent on-year to S$55.34 million, OUE C-REIT said in a filing to SGX.

The distribution per unit (DPU) was 0.90 Singapore cent for the quarter, compared with 1.12 Singapore cents in the year-ago period, before the rights issue of 1.29 billion units in October, the REIT said.

“We are pleased to report a strong set of first quarter of 2019 results,” Tan Shu Lin, CEO of the REIT manager, said in the statement.

“Operational performance remains positive, with stable committed occupancy and higher average passing office rents across OUE C-REIT’s portfolio of properties,” she added.

As of end-March, committed office occupancy at OUE Bayfront and One Raffles Place was “healthy” at 97.1 percent and 96.5 percent, respectively, compared with overall occupancy in Singapore’s core central business district (CBD) of 95.2 percent, Tan said.

Committed occupancy at OUE Downtown Office was at 93.9 percent at end-March, up 0.4 percentage point on-quarter, the statement said.

In its outlook, the REIT pointed to CBRE data showing stable leasing activity in Singapore’s CBD and a rise in rents.

“Given the benign medium term supply outlook and the narrowing of the gap between market rents and expiring rents in OUE C-REIT’s Singapore properties, we continue to expect positive operational performance in 2019,” the REIT said.

OUE Commercial REIT’s portfolio includes OUE Bayfront, One Raffles Place and OUE Downtown Office in Singapore, and Lippo Plaza in Shanghai.

 

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