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Year on year, OUE C-REIT’s amount available for distribution decreased by 7.5%, from $32.7 million to $30.2million, in Q3 2021.
OUE Commercial REIT’s (OUE C-REIT) amount available for distribution fell 7.5% to $30.2 million in the third quarter of 2021, from $32.7 million over the same period last year.
Revenue declined 17.5% to $58.5 million in Q3 2021, from $70.9 million in Q3 2020. Net property income (NPI) also dropped 17.1% to $46.2 million from $55.8 million previously.
The REIT attributed the decline mainly to the deconsolidation of OUE Bayfront’s performance following the divestment of its 50% stake in the property.
As of 30 September 2021, OUE C-REIT’s commercial segment saw its committed occupancy rate increase by 0.3 percentage points to 92%, due to improved office occupancies in Shanghai and Singapore.
But as businesses continue to be affected by the imposition of tighter safe management measures, about $1.1 million in rental rebates were provided by the REIT in Q3 2021, which was a lower quantum compared to the previous quarters.
OUE C-REIT’s hospitality segment saw revenue per available room drop 9.6% quarter-on-quarter to $92 in Q3 2021.
“We are pleased to report a stable operating performance for the office properties in Singapore despite a slowdown in leasing activity due to the recurrent tightening of safe management measures over Q3 2021,” said Tan Shu Lin, CEO of the REIT’s manager.
She revealed that the REIT secured its maiden sustainability-linked loan of $540 million in October.
“The refinancing of existing borrowings with this new facility will extend OUE C-REIT’s average term of debt to 3.3 years on a pro forma basis, resulting in a well-spread out debt maturity profile with no debt due until December 2022,” she said.
She added that OUE C-REIT’s inclusion in the FTSE EPRA Nareit Global Real Estate Index had enhanced the REIT’s visibility and investability amongst global investors.
“We will continue to focus on proactive asset management and maintain prudence and discipline in capital management, to deliver stable and sustainable returns to unitholders,” she said.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
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