OUE Commercial REIT’s revenue rose by 14.9% y-o-y and net property income in increased 18.0% y-o-y to $56.6 million in 1QFY2023. Much of the gain was from the hospitality segment as revenue rose 30% y-o-y to $21 million.
Hospitality RevPAR doubled y-o-y to $227 on the back of higher room rates supported by the ongoing recovery in the hospitality sector. On January 1 this year, Hilton Singapore Orchard reopened the 446-room Orchard Wing. With the full inventory of 1,080 rooms compared to only 634 rooms available for booking from February 24, 2022, Hilton Singapore Orchard’s RevPAR grew by 2.4 times y-o-y to $233 for the quarter. Meanwhile, Crowne Plaza Changi Airport’s RevPAR has recovered to pre-pandemic levels, increasing by 71.4% y-o-y, to $216.
Mandarin Gallery’s shopper traffic remained below pre-Covid levels during the first quarter. However rental reversions during the quarter rose by 11.6%.
The REIT’s office portfolio’s committed occupancy rose by 1.2 percentage points q-o-q during the first quarter, to 96.7%. Positive rental reversion of 6.7% was recorded for office leases in 1Q2023 and average passing rent for the portfolio rose 1.6% q-o-q to $10.26 psf per month as of March.
Lippo Plaza in Shanghai’s occupancy dropped by 4.7 ppt q-o-q to 75.2% due to competition.
Aggregate leverage as at March 31 was 39% with some 69.4% of debt fixed. Weighted average cost of debt was 3.8%. The REIT has no refinancing due till 2024.
