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OUE Commercial Reit posted a 15.4 percent drop in distribution per unit (DPU) to 1.15 cents in Q2 2017 from 1.36 cents over the same period last year.
Amount available for distribution inched up by 0.6 percent to S$17.8 million, while revenue fell 3.2 percent to S$44.2 million.
Net property income also dropped by 1.3 percent to S$34.8 million
Tan Shu Lin, chief executive officer of the trust’s manager, revealed that committed office occupancy at all three properties within OUE C-Reit’s portfolio outperformed their respective office markets, despite the increased leasing competition posed by new developments and the decline in market occupancy rate.
As at end-Q2 2017, the trust’s overall portfolio committed occupancy rose to 96.4 percent from 95.8 percent in Q1 2017.
“Further, committed rents for new and renewed office leases in Q2 2017 were in line with or higher than current market rates, which attests to the quality and strategic location of OUE C-Reit’s properties,” he said.
“Other than maintaining our proactive efforts to retain tenants as well as attract new tenants to ensure healthy occupancy rates, the manager will continue to focus on active cost management measures to mitigate any impact of lower committed rents on rental income. We remain steadfast in our commitment to deliver stable and sustainable returns for our Unitholders,” he added.
This article was edited by Denise Djong.
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