The manager of OUE Commercial Real Estate Investment Trust (OUE C-REIT) has reported gross revenue of $58.5 million for the 3QFY2021 ended September, 17.5% lower than gross revenue of $70.9 million in the corresponding period the year before.
Net property income (NPI) in the 3QFY2021 fell 17.1% y-o-y to $46.2 million, from $55.8 million. This was due to the deconsolidation of OUE Bayfront’s performance following the divestment of a 50% interest in the property on March 31.
This was partly offset by lower rental rebates and lower property expenses.
Share of joint venture results stood at $4.0 million this year, where there were none in the 3QFY2020.
See: OUE C-REIT posts 23% higher DPU of 1.23 cents for 1H21
Accordingly, amount available for distribution stood 7.5% lower y-o-y at $30.2 million, attributable to the lower interest expense and including income contribution from OUE Bayfront.
See also: Trump wins Republican nomination, setting up rematch with Biden
As at end-September, OUE C-REIT’s commercial segment saw committed occupancy of 92.0%, 0.3 percentage points higher q-o-q. This was due to the improved office occupancies in both Singapore and Shanghai.
Lippo Plaza, in particular, saw committed occupancy increase 0.6 percentage points q-o-q to 89.1%, above the overall Shanghai Grade A office occupancy of 87.2%.
The REIT’s committed Singapore office occupancy improved 0.3 percentage points q-o-q to 92.6%.
Mandarin Gallery saw committed occupancy fall 2.2 percentage points q-o-q to 87.4%, with committed occupancy at 93.3% including short-term leases.
The vacancy increase was partly due to the tightened social restrictions in Singapore, as well as the ongoing repositioning of certain spaces to increase the food and beverage (F&B) offerings within the space.
Shopper traffic and tenant sales in September stood at around 70% and 60% of pre-Covid-19 levels respectively.
OUE C-REIT’s weighted average lease expiry (WALE) as at end-September stood at 3.5 years by gross rental income (GRI).
The REIT’s aggregate leverage stood at 38.4% as at Sept 30.
Mandarin Orchard Singapore, under the REIT’s hospitality segment, saw revenue per available room (RevPAR) decline 5.5% q-o-q to $68 for the 3QFY2021 on the absence of stay-home notice books, which ceased in June.
Crowne Plaza Changi Airport continued to serve the air crew and aviation segment. In 3QFY2021, the hotel’s RevPAR stood at $111.
For more stories about where money flows, click here for Capital Section
The overall RevPar for the REIT’s hospitality segment stood 9.6% lower q-o-q at $92.
For more stories about where the money flows, click here for our Capital section
Tan Shu Lin, CEO of the manager, says, “We are pleased to report a stable operating performance for the office properties in Singapore despite a slowdown in leasing activity due to the recurrent tightening of safe management measures over 3QFY2021. In October, OUE C-REIT secured its maiden $540 million sustainability-linked loan in line with ongoing commitment to our sustainability targets and to reduce the environmental impact of the portfolio.”
“The refinancing of existing borrowings with this new facility will extend OUE C-REIT’s average term of debt to 3.3 years on a pro forma basis, resulting in a well-spread out debt maturity profile 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 amongst global investors. We will continue to focus on proactive asset management and maintain prudence and discipline in capital management, to deliver stable and sustainable returns to unitholders,” she adds.
Units in OUE C-REIT closed 0.5 cent higher or 1.12% up at 45 cents on Nov 2.
Photo: OUE C-REIT
