OUE C-Reit beats its Q4 DPU forecast by 20.4%

Singapore

OUE Commercial Reit (OUE C-Reit) reported a distribution per unit (DPU) of 1.36 Singapore cents for Q4 2015, beating its forecast of 1.13 cents by 20.4 per cent.

The forecasted DPU was listed in a July 2015 circular relating to the acquisition of One Raffles Place. In Q4 2014, the DPU was 0.99 cent (restated).

Amount available for distribution for Q4 2015 rose 40.1 per cent year on year to S$17.63 million, due to lower than expected finance costs. Its performance during the quarter was also buoyed by the recent acquisition of One Raffles Place and a better operating performance across its portfolio.

OUE C-Reit completed the acquisition of an 83.33 per cent indirect interest in OUB Centre, which owns 81.54 per cent of One Raffles Place, on Oct 8 last year.

Net property income more than doubled year on year to S$29.68 million, thanks to higher gross revenue from the better operating performance across its portfolio as well as lower utilities costs incurred by OUE Bayfront and One Raffles Place.

Gross revenue also more than doubled to S$40.34 million, up from S$19.56 million a year ago.

For the full year, the amount available for distribution came to S$56.12 million, compared to S$45.9 million for the period spanning Oct 10, 2013 (when it was constituted) to Dec 31, 2014. DPU for FY2015 clocked 4.38 cents, rising from 3.63 cents in the comparable period.

As at Dec 31, 2015, committed office occupancy at OUE Bayfront, Lippo and One Raffles Place came to 94.3 per cent.

"Office rental reversions in 4Q 2015 were positive across the portfolio, with OUE Bayfront and One Raffles Place in Singapore seeing 19.9 per cent and 11.8 per cent uplift in renewed and reviewed office rents respectively, while Lippo Plaza (in Shanghai) saw a 9.7 per cent increase," OUE C-Reit said. It expects to enjoy the full impact of these positive rent reversions in 2016.

As at Dec 31, 2015, OUE C-Reit's investment properties were worth some S$3.4 billion. Excluding One Raffles Place, the value of the IPO portfolio has increased 2.4 per cent from Dec 31, 2014.

The DPU of 2.38 Singapore cents for H2 2015 will be paid to unitholders on Feb 29.

The counter closed at 63.5 Singapore cents on Wednesday, up two cents.