OUE C-REIT net property income down 17.1% YoY in Q3

Meanwhile, its amount for distribution also decreased by 7.5%.

OUE Commercial REIT's net property income was at $46.2m in the third quarter (Q3). This is 17.1% lower on a year-on-year (YoY) basis

The decrease was due to the deconsolidation of OUE Bayfront’s performance post divestment of 50% interest in the property on 31 March, the company said. 

A distribution amount of $30.2m was also recorded in the same period, or -7.5%, YoY. 

Tan Shu Lin, CEO, OUE-CREIT, said that this performance shows a stable performance, despite the recurrent tightening of safe management measures.

The commercial segment also echoed this performance as the group’s commercial segment committed occupancy was 0.3 percentage points (ppt) quarter-on-quarter (QoQ) to 92% as of 30 September. Committed Singapore office occupancy improved 0.3 ppt QoQ to 92.6%.

Around $1.1m of rental rebates were also provided in Q3 2021. 

Lippo Plaza saw an increase in committed office occupancy by 0.6 ppt to 89.1%, whilst Mandarin Gallery’s committed occupancy saw a slide by 2.2 ppt QoQ to 87.4%, with committed occupancy hovering at 93.3%.

The hospitality segment, on the other hand, saw the Mandarin Orchard Singapore have a decline in revenue per available room (RevPAR) by 5.5% QoQ to $68. This is due to the absence of stay-home notice business which ceased earlier in June. 

Crowne Plaza Changi Airport, meanwhile, had a RevPAR of $111, 9.6% lower on a QoQ basis.

As of 30 September, the group’s aggregate leverage was at 38.3% with a weighted average cost of debt of 3.2% per annum. The group also obtained its maiden $40m sustainability-linked loans in order to reduce the environmental impact of the portfolio. The average term of debt is expected to lengthen from 2.7 years to 3.3 years as of September 2021, with the weight average cost of debt staying stable at 3.2% per annum.