OUE Commercial Reit's Q1 DPU falls 8.9% on enlarged unit base

OUE Commercial Reit's (OUE C-Reit) distribution per unit (DPU) for the first quarter fell 8.9 per cent to 1.12 Singapore cents due to an enlarged unit base from a private placement completed in March last year.

Revenue edged 1.6 per cent lower year-on-year to around S$44.1 million on the back of lower rental income, but net property income was 1.8 per cent higher at S$35.28 million due mainly to lower maintenance expenses and utilities cost. The amount available for distribution to unitholders rose 4.7 per cent to S$17.42 million due to higher income support drawn.

Its properties include One Raffles Place, OUE Bayfront and Lippo Plaza in Shanghai's Huangpu district.

Tan Shu Lin, chief executive of OUE Commercial Reit Management, said: "OUE C-Reit's portfolio committed occupancy continued to be robust at 96.9 per cent in Q1 2018, with all three properties achieving higher-than-market office occupancy. As the Singapore office market continues to improve, committed office rents achieved across the Singapore portfolio on average in Q1 2018 were higher q-o-q, and continued to be at a premium to market rates."