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OUE C-Reit Q4 DPU down 34.2%

OUE Commercial Reit's (OUE C-Reit) distribution per unit (DPU) slid 34.2 per cent for the fourth quarter ended Dec 31, 2018. DPU decreased to 0.75 Singapore cent from 1.14 Singapore cent.

If Q4 2017 DPU was restated to include the 1.3 billion new units issued on Oct 30, DPU would increase 21 per cent to 0.75 Singapore cent from 0.62 Singapore cent a year ago. The rights units issue was done to finance the purchase of the office component of OUE Downtown. This acquisition was completed on Nov 1.

Net property income increased 5.6 per cent to S$36.6 million primarily due to contribution from OUE Downtown Office, offset partially by lower net property income contribution from the existing portfolio. Revenue lifted 9.2 per cent to S$48 million. 

Income available for distribution was up 21.6 per cent. The group faced higher interest expenses as a result of higher borrowings to fund the acquisition, but this was offset by the drawdown of OUE Downtown Office’s rental support and lower distribution to convertible perpetual preferred unit holder.

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The distribution for H2 2018 is 1.3 Singapore cent, and the payment date is March 5. The books closure date is Feb 11.

OUE C-Reit closed flat at S$0.49 before results were out.