OUE C-Reit's amount available for distribution slips 7.5% in Q3 to S$30.2m
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OUE Commercial Reit's (OUE C-Reit) amount available for distribution was S$30.2 million for the third quarter ended Sep 30, down 7.5 per cent year on year, the real estate investment trust (Reit) said in a Singapore Exchange business update on Tuesday after market close.
Revenue was down 17.5 per cent at S$58.5 million, while net property income for the quarter fell 17.1 per cent to S$46.2 million. The Reit attributed this mainly to the deconsolidation of OUE Bayfront's performance, after the divestment of its 50 per cent stake in the property.
Despite slower leasing momentum due to tightened Covid-19 curbs, OUE C-Reit's commercial segment's committed occupancy edged up 0.3 percentage points to 92 per cent as of Sep 30, with improved office occupancies in both Singapore and Shanghai.
About S$1.1 million in rental rebates was provided in Q3, lower than in previous quarters. The Reit's manager said that with the further extension of Covid-19 curbs into Q4, it will "continue to monitor the situation closely and provide support where necessary".
In the hospitality segment, revenue per available room was S$92, down 9.6 per cent from the previous quarter.
"Despite potential demand risks as occupiers assess their longer-term space requirements, the limited supply pipeline is expected to support a positive medium-term outlook for Grade A office rents," said the Reit.
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Its Hilton Singapore Orchard property is expected to relaunch in Q1 2022 and "will be well-positioned to capture the nascent recovery in the hospitality segment" with the opening of Vaccinated Travel Lanes, it added.
Beyond the quarter, the Reit secured its first S$540 million sustainability-linked loan in October. The refinancing of existing borrowings with this new facility will extend the Reit's pro forma average term of debt to 3.3 years, with no debt due until December 2022.
"OUE C-Reit's recent inclusion in the FTSE EPRA Nareit Global Real Estate Index has also enhanced its visibility and investability among global investors," said the Reit manager's chief executive officer Tan Shu Lin. The Reit was included in September.
OUE C-Reit units closed up S$0.005 or 1.12 per cent at S$0.45 on Tuesday before the news.
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