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OFFICE-SPACE landlord OUE Commercial Reit (OUE C-Reit) on Tuesday posted a 29.4 per cent year-on-year jump in distribution per unit (DPU) to 1.32 Singapore cents for the third quarter ended Sept 30, buoyed by contribution from its majority stake in One Raffles Place, as well as improved revenue from OUE Bayfront and Lippo Plaza.
Net property income and gross revenue more than doubled from a year ago - from S$15.56 million to S$35.33 million and from S$20.61 million to S$44.18 million respectively.
Higher property operating expenses were incurred due to the inclusion of One Raffles Place's expenses, which were partially offset by lower property tax at OUE Bayfront and lower leasing commissions at Lippo Plaza.
OUE C-Reit has an effective interest of 67.95 per cent in One Raffles Place, after it completed in October 2015 the acquisition of an 83.33 per cent indirect interest in OUB Centre, which owns 81.54 per cent of One Raffles Place.
Tan Shu Lin, CEO of the Reit manager, pointed out that the portfolio's committed occupancy was stable at 94.4 per cent as at Sept 30, compared to 94.5 per cent a quarter ago, with higher average passing rents at all three properties year on year despite declining market rents.
"Year-to-date, rental reversions remained positive at 1.2 per cent and 0.9 per cent at OUE Bayfront and One Raffles Place, respectively," she added. "At Lippo Plaza, renewed rents continued to see a 10.3 per cent uplift over preceding rents over the same period."