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OUE Commercial Real Estate Investment Trust (OUE C-REIT) saw its distribution per unit (DPU) increase 47.5 percent to 0.90 cents in the first quarter of 2019 from its restated DPU of 0.61 cents in Q1 2018.
This comes after the company’s amount available for distribution jumped 49.5 percent to $26 million.
Revenue rose 25.5 percent to $55.3 million, while net property income also increased 23.5 percent to $43.6 million.
“We are pleased to report a strong set of 1Q 2019 results for OUE C-REIT. With a full quarter’s contribution from OUE Downtown Office which was acquired on 1 November 2018, 1Q 2019 net property income was 23.5 percent higher year-on-year,” said Tan Shu Lin, chief executive officer of the manager.
“Operational performance remains positive, with stable committed occupancy and higher average passing office rents across OUE C-REIT’s portfolio of properties.”
In an SGX filing, the trust revealed that committed occupancy for One Raffles Place and OUE Bayfront stood at 96.5 percent and 97.1 percent respectively, ahead of the city-state’s core CBD occupancy of 95.2 percent.
Committed occupancy at OUE Downtown Office, on the other hand, was at 93.9 percent as at 31 March 2019.
“In Shanghai, Lippo Plaza’s committed office occupancy eased 2.8 ppt quarter-on-quarter to 90.4 percent as at 31 March 2019 as demand softened on the back of a subdued economy,” it said.
The trust noted that “the gap between market rents and expiring rents at OUE C-REIT’s Singapore properties has narrowed significantly”.
“Given the benign medium term supply outlook, we continue to expect positive operational performance in 2019.”
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
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