OUE C-REIT's NPI up 54.8% to $50.1m in Q3
This was mainly due to contribution from the OUE Downtown office.
OUE Commercial Real Estate Investment Trust (REIT) continued its strong growth throughout the first half of the year as its net profit income (NPI) jumped 54.8%% YoY to $50.1m in Q3 from $32.3m last year, its SGX filing revealed. Revenue also climbed 53.7% YoY to $63.3m from $41.2m in the previous year.
For the first nine months of 2019, NPI rose 32.2% YoY to $134.4m from $101.6m in H1 2018 whilst revenue increased by 32.9%% YoY to $170.5m from $128.4m in the previous year.
Its strong performance was mainly accounted to contribution from OUE Downtown office, acquired last November 2018, further augmented by the merger with OUE H-Trust in September of this year. They also reported higher committed retail occupancy, improved committed office occupancy, above average office rents, and higher renewal of rents, particularly for One Raffles Place and OUE Bayfront.
The firm’s amount available for distribution climbed 56.8% YoY to $78.1m in Q3 from $49.8m last year, whilst distribution per unit (DPU) fell 9.5% YoY to $2.47 in the third quarter from $2.73.The firm reported a stable committed portfolio occupancy of 95.2%. OUE Bayfront overall committed office occupancy stood at 99.3%, well above the overall One Raffles Place market occupancy of 94.6%. However, OUE Downtown and Lippo Plaza’s office occupancy finished lower at 93.8.6% and 90.8%, respectively.
Meanwhile, Lippo Plaza’s overall committed office occupancy stood at 92.1% whilst current office occupancy is reported to be at 90.8%, higher than Shanghai’s CBD Grade A Office market occupancy of 87.5%.
OUE C-REIT has declared a distribution of $0.53 payable on 5 December.