OUE C-Reit bumps up H1 DPU to 1.23 Singapore cents after earlier retention

OUE Commercial Real Estate Investment Trust (OUE C-Reit) will make a first-half distribution per unit (DPU) of 1.23 Singapore cents, after having held back on a payout the year before.

Distributable income was up by 3 per cent year on year to S$67.2 million for the six months to June 30, the manager said on Thursday.

Meanwhile, the trust's payouts will be ramped up from the previous DPU of one cent, as S$10.8 million had been retained in the year before "to preserve financial flexibility in view of uncertainties posed by the Covid-19 situation".

Net property income dipped by 3.1 per cent to S$109.0 million on the divestment of a half-stake in OUE Bayfront, which is now recognised within the Reit's share of joint-venture results.

Meanwhile, revenue fell by 6 per cent to S$133.5 million, as the OUE Bayfront divestment dragged down contributions from the commercial portfolio. Income from the hospitality segment was stable at the minimum rent under master lease arrangements.

OUE C-Reit holds the Mandarin Orchard Singapore and Crowne Plaza Changi Airport hotels, as well as a commercial building in Shanghai and four others in Singapore.

Committed occupancy for the commercial properties was 91.7 per cent as at end-June, with portfolio weighted average lease expiry of 3.6 years by gross rental income. The aggregate leverage stood at 38.0 per cent, with an average term of debt of 2.9 years.

The DPU of 1.23 cents will be paid out on Sept 10, with books closing on Aug 6.

Units closed flat on Thursday at S$0.43, before the results were announced.