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OUE C-Reit posts 44% rise in Q3 DPU to 0.79 S cent

OUE Commercial Reit (OUE C-Reit) on Wednesday posted a third-quarter distribution per unit (DPU) of 0.79 Singapore cent, up 43.6 per cent from a DPU of 0.55 cent for the same period a year earlier, thanks to gains from its merger with OUE Hospitality Trust in September. 

Total income available for distribution rose 85.9 per cent from a year ago to S$29.5 million. 

Net property income in the quarter ended Sept 30 was up 54.8 per cent at S$50.1 million, due mainly to the inclusion of OUE Downtown Office, which was acquired in November 2018, and Mandarin Gallery upon completion of the merger. 

That said, the Reit also recorded a fair-value adjustment of S$16.8 million in relation to the merger. 

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Its portfolio currently comprises seven high-quality prime properties located in Singapore and Shanghai. 

"Overall, the operational performance of OUE C-Reit's property portfolio is expected to be positive for the balance of 2019, and into 2020," the Reit said in its outlook.

The Q3 DPU comprises the clean-up distribution before the merger of 0.53 Singapore cent and post-merger distribution of 0.26 cent.

The clean-up distribution is calculated based on amount available for distribution from July 1 to the day immediately preceding the merger, (Sept 3), while the post-merger distribution is calculated based on the amount available for distribution from Sept 4 to Sept 30, adjusted for the new units issued in relation to the merger.

The clean-up distribution will be paid on Dec 5.