OUE Commercial Reit's NPI gains 4.7% in Q3; DPU up 5.2%

OUE Commercial Reit's (OUE C-Reit) net property income (NPI) rose 4.7 per cent in the third quarter to S$15.6 million, beating its forecast by 8.1 per cent, managers of the office building trust announced on Wednesday.

The amount available for distribution increased by 7.1 per cent to S$13.1 million in the three months ended September, and distribution per unit increased by 5.2 per cent to 1.02 Singapore cents.

For the nine months to September, net property income rose 16.4 per cent to S$46 million while distribution per unit increased by 14.4 per cent to 3.02 Singapore cents.

Gross revenue in Q3 increased by 5.7 per cent to S$20.6 million due to higher office occupancy at Lippo Plaza and higher other property-related income from OUE Bayfront.

While low office vacancy in Singapore is expected to continue in the near term, new office developments in the second half of 2016 could impact vacancy and rents, the Reit said.

In China, the trust is expecting a "subdued" rental outlook as the Shanghai vacancy rate is expected to increase in the coming quarters.

OUE C-Reit's shares slipped 0.7 per cent, or half a Singapore cent, to close at 68.5 Singapore cent on Wednesday before the results were announced.