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OUE Commercial REIT (OUE C-Reit) posted a distribution per unit (DPU) of 1.32 cents for the third quarter ended 30 September 2016, up 29.4 percent over the same period last year.
Gross revenue soared 114.4 percent to S$44.2 million in Q3 2016, primarily due to contribution from One Raffles Place as well as improved performance at Lippo Plaza and OUE Bayfront.
In Q3 2016, the trust incurred higher property operating expenses due to the inclusion of One Raffles Place’s expenses, which were partially offset by lower leasing commissions at Lippo Plaza and lower property tax at OUE Bayfront.
With this, OUE C-Reit saw its net property income rose 127 percent to S$35.3 million in Q3 2016 from S$15.6 million in Q3 2015.
As at 30 September, the portfolio’s committed occupancy was stable at 94.4 percent, compared to 94.5 percent during the previous quarter, with higher average passing rents at all three properties year-on-year, revealed Tan Shu Lin, chief executive officer of the trust’s manager in a an SGX filing on Tuesday (1 November).
Rental reversions also remained positive at 0.9 percent and 1.2 percent at One Raffles Place and OUE Bayfront, respectively. Renewed rents at Lippo Plaza also continued to witness a 10.3 percent uplift over preceding rents during the same period, said Tan.
“Notwithstanding the challenging operating environment, the manager will continue its proactive efforts to attract new tenants as well as retain existing tenants. Together with our prudent and disciplined approach to capital management, we remain focused on delivering stable and sustainable returns for our unitholders,” she added.
Image: OUE Bayfront
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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