OUE Commercial REIT 2Q19 net property income jumped 20 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 Wednesday its second quarter net property income jumped 20.1 percent on-year to S$40.75 million, mainly on the acquisition of OUE  Downtown Office in November 2018.

Revenue for the quarter ended 30 June increased 20.5 percent on-year to S$51.89 million, the REIT said in a filing to SGX Wednesday.

The distribution per unit (DPU) for the quarter was 0.78 Singapore cent, compared with 0.58 Singapore cent in the year-ago period, adjusted for the issue of 1.29 billion new units issued in October 2018 in a rights issue, the REIT said. Excluding the adjustment, the DPU for the second quarter of 2018 was 1.06 Singapore cents, the filing said.

“Although rental growth in the Singapore CBD Grade A office market has moderated, continued leasing momentum within OUE C-REIT’s properties led to higher rents being achieved in the second quarter of 2019 compared to the previous quarter, while maintaining stable committed office occupancy,” Tan Shu Lin, CEO of the REIT’s manager, said in the statement.

“OUE C-REIT’s Singapore properties continued to record positive rental reversions for the lease renewals committed in the second quarter of 2019,” she added.

For the first half, OUE Commercial REIT reported net property income of S$84.32 million, up 21.8 percent on-year, on revenue of S$107.22 million, up 23 percent on-year. The DPU for the first half was 1.68 Singapore cents, compared with an adjusted 1.19 Singapore cents for the year-ago period, the filing said.

OUE Commercial REIT’s portfolio currently holds four commercial properties: One Raffles Place, OUE Downtown Office and OUE Bayfront in Singapore and Lippo Plaza in Shanghai.

OUE Bayfront’s committed office occupancy was 99.3 percent at end-June, above the Singapore CBD average rate of 96.1 percent, while the retail component reached full occupancy in the quarter, the filing said.

One Raffles Place’s committed office occupancy was at 94.5 percent, the REIT said. The One Raffles Place Shopping Mall had committed retail occupancy of 97.8 percent at end-June as the fit-out of anchor tenant and co-working operator Spaces was on track to begin operations in the third quarter, the filing said.

OUE Downtown Office’s committed office occupancy was 93.2 percent at end-June, the REIT said.

Lippo Plaza in Shanghai had committed office occupancy of 89.2 percent at end-June, down 1.2 percentage points on-quarter, although it remained above the Shanghai CBD Grade-A average of 88.4 percent, the REIT said. Lippo Plaza’s retail podium has added a flagship store of a high-end sportswear brand, boosting committed retail occupancy to a new high of 98.7 percent, the REIT said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.