OUE C-Reit Q3 distributable income up 15.8% with contribution from merger

THE distributable income of OUE Commercial Reit (C-Reit) rose 15.8 per cent year on year to S$34.2 million for the third quarter ended Sept 30, the real estate investment trust's (Reit) manager said in an update on the Singapore Exchange on Thursday evening.

Net property income was up 11.4 per cent at S$55.8 million, with the increase due to the merger with OUE Hospitality Trust in September 2019, said OUE C-Reit.

The increase was partially offset by some S$5 million in rental rebates to retail tenants. But this was less than the rebates granted in Q2, allowing for quarterly growth in net property income and the amount available for distribution.

To date, S$18.5 million has been provided in support to tenants, excluding another S$20.5 million in support from the government.

Revenue rose 12 per cent to S$70.9 million, with 63.8 per cent of revenue for the quarter being contributed by the Reit's office segment.

Committed occupancy in the office portfolio rose 0.8 percentage points from the previous quarter, to 94.5 per cent as at end-September. With positive rental reversions of 2.9 per cent to 22.1 per cent in the quarter, average passing rents rose year on year.

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Across the Reit's full portfolio, rental collections remain healthy at above 90 per cent; rent deferments have been "manageable" at S$1.2 million, said the Reit's manager.

From Q3, half of base management fees are to be paid in cash - up from 20 per cent previously - with the rest in units, said OUE C-Reit's manager, adding that this is in line with its objective of delivering long-term sustainable distribution per unit.

Net asset value per unit was flat from a year ago, at S$0.61 as at Sept 30.

As OUE C-Reit has a semi-annual distribution policy, any distribution or retention will be announced with its full-year results