SINGAPORE (Jan 26): The manager of OUE Commercial REIT has announced a distribution per unit (DPU) of 1.18 cents in 4Q16, 13.2% lower than DPU of 1.36 cents in the same period a year ago.
This was mainly due to the absence of one-off adjustments which had augmented 4Q15 performance.
This brings FY16 total DPU to 5.18 cents, 18.3% higher than DPU of 4.38 cents a year ago.
In 4Q, OUE C-REIT’s net property income grew 17.3% to $34.8 million, contributing to 11.6% higher revenue of $45.0 million as a result of improved performance at all three properties in the portfolio.
FY16 revenue surged 76.0% to $177.8 million, from $101.0 million a year ago, mainly due to a full year’s contribution from One Raffles Place.
In addition, OUE Bayfront and Lippo Plaza saw improved performance, with organic growth at a healthy 10.4% y-o-y.
FY16 net property income grew 83.3% to $138.6 million.
“FY2016 has been a challenging year for the office markets in both the central business districts of Singapore and Shanghai, due to significant new office supply coming on-stream,” says Tan Shu Lin, CEO of the manager. “Despite the lacklustre operating conditions, OUE C-REIT continued to deliver good results.”
Tan says OUE Commercial REIT Management will continue to focus its efforts to proactively attract and retain tenants to ensure stability of occupancy rates.
“We will also focus on active cost management measures so as to mitigate any impact on rental income as a result of negative rental reversions,” Tan adds.
Units of OUE Commercial REIT closed unchanged at 70 cents on Thursday.