OUE REIT posts $57.6m Q1 NPI, up 8.4% on hospitality gains

Revenue rose 6.7% as hospitality gains 16.8% and office rents stay resilient.

OUE Real Estate Investment Trust (OUE REIT) reported net property income (NPI) of $57.6m for the first quarter of 2026, up 8.4% year on year (YoY), supported by stronger hospitality performance and lower finance costs, according to its results released on 21 April.

Revenue rose 6.7% YoY to $70.5m for the period ended 31 March. The manager attributed the performance to double-digit growth in the hospitality segment and steady contributions from its commercial portfolio as finance costs declined 17.8% YoY, the REIT said.

The hospitality segment recorded revenue of $26.8m and NPI of $24.3m, up 15.1% and 16.8% respectively, driven by higher demand, revenue management initiatives and improved meetings, incentives, conventions and exhibitions (MICE) activity with RevPAR for the segment increasing 11.7% YoY to $277.

The commercial segment posted revenue of $43.6m and NPI of $33.3m, up 2.2% and 3.0% respectively, supported by positive rental reversion across its Singapore office portfolio.

As at 31 March, committed occupancy for the Singapore office portfolio was 95.2%, with rental reversion of 6.0% for office renewals.

OUE REIT completed the acquisition of a 19.9% interest in the Salesforce Tower in Sydney on 16 March for $319.8m (AUD357.2m), according to the announcement.

The asset was 99.2% committed at the time of reporting, with a weighted average lease expiry of 5.3 years.

The manager also obtained planning approval to convert Level 17 of OUE Bayfront into more than 22,600 square feet (sq ft) of office space. The project, with capital expenditure of up to $43m, is expected to generate a stabilised return on investment above 11.0%.

Aggregate leverage stood at 41.5% as at 31 March. The weighted average cost of debt declined to 3.7% per annum, while interest coverage ratio improved to 2.6 times.

OUE REIT said it will continue focusing on capital management, asset optimisation and portfolio resilience across Singapore and Sydney.

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OUE REIT Management Pte. Ltd.

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