OUE Commercial REIT reported Wednesday its second half net property income dropped 20.3 percent on-year to S$95.16 million, after the divestment of 50 percent of OUE Bayfront in March 2021.
The decrease was partly offset by lower rental rebates and property expenses, the REIT said.
Revenue for the six months ended 31 December declined 22.4 percent on-year to S$116.34 million, the REIT said in a filing to SGX.
The distribution per unit (DPU) for the second half was 1.37 Singapore cents, down 4.2 percent from 1.43 Singapore cents in the year-ago period, the filing said.
For the full year, OUE Commercial REIT reported net property income of S$204.21 million, down 11.9 percent on-year, on revenue of S$249.88 million, 14.4 percent lower on-year. The full-year DPU was 2.60 Singapore cents, up 7 percent from 2.43 Singapore cents in 2020, the filing said.
At end-December, the Singapore office properties posted committed occupancy of 91.2 percent, down 1.4 percentage point on-quarter. But the average passing rents of the Singapore office properties rose on-year, with OUE Bayfront’s average passing rent at a high of S$12.49 a square foot a month on the successful renewal of an anchor tenant, the filing said.
In the retail segment, the Mandarin Gallery’s committed occupancy fell 0.7 percentage point on-quarter to 86.7 percent at end-December, the REIT said. But it added that shopper traffic and tenant sales in December improved to around 75 percent and 65 percent, respectively, of pre-Covid levels.
In the hospitality segment, holiday-season staycation demand boosted Mandarin Orchard Singapore’s revenue per available room (RevPAR) to S$97 in the fourth quarter, up 43.9 percent on-quarter, the REIT said. The Crowne Plaza Changi Airport reported fourth quarter RevPAR of S$125, up 13 percent on-quarter as Singapore eased some Covid-related border restrictions.
Han Khim Siew, CEO of the REIT’s manager, pointed to a more positive outlook for the office segment.
“With the authorities allowing 50 percent of employees to return to the office from January, we have seen an improvement in office leasing momentum. This bodes well for a continued recovery in Singapore office rents in 2022, which will underpin the performance of OUE C-REIT’s high quality Grade A office properties,” Han said in the statement.