OUE Reit declares flat H2 DPU of S$0.0104 despite higher revenue
OUE Reit : TS0U 0%’s distribution per unit stayed flat year on year at S$0.0104 for its second half ended Dec 31, 2023, its manager reported on Monday (Jan 29).
This was even as the revenue of the real estate investment trust (Reit) rose 16.4 per cent on the year to S$146.3 million, from S$125.7 million previously.
Net property income for the half year grew 15.9 per cent on the year to S$119.7 million, from S$103.3 million.
The manager attributed the higher revenue and net property income to the strong operational performance of its Singapore portfolio, driven by the full-room inventory of Hilton Singapore Orchard.
“Stable occupancies and rental growth achieved at OUE Reit’s other commercial properties also contributed to the growth,” said the manager.
Distributable income climbed 10.8 per cent year on year to S$57.7 million, from S$52.1 million in the corresponding year-ago period.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The distribution will be paid out on Feb 28, after the books are closed on Feb 6, 2024.
Meanwhile, for the full year ended Dec 31, 2023, DPU was lower at S$0.0209, from S$0.0212 the previous year; distributable income grew 3.3 per cent to S$115.3 million.
Revenue was 18 per cent higher at S$285.1 million, and net property income rose 19.3 per cent to S$235 million for the full-year.
As at Dec 31, 2023, the valuation of the Reit’s properties increased 1.7 per cent year on year to S$6.3 billion, mainly driven by higher valuations for its hotel properties, which benefited from the significantly improved hospitality sector post-pandemic.
The valuation of its Singapore offices remained stable, supported by positive rental reversion achieved during the year, said the manager.
Macroeconomic uncertainties continue to weigh on Singapore’s economy, but the manager of the Reit remains confident that OUE Reit’s prime portfolio of hospitality and commercial assets will continue to clock a “stable performance” for unitholders.
In the commercial sector, OUE Reit plans to leverage the prime locations and well-diversified tenant mix of its green-certified, core Grade-A office assets to capitalise on the continued demand for green-certified buildings.
And with global air travel volume expected to make a full recovery early this year, OUE Reit’s hospitality assets are “well-positioned to capitalise on the anticipated increase in tourists and business travellers in 2024 and beyond”, said its manager.
Units of OUE Reit traded flat at S$0.28 on Monday before the announcement.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Hong Kong’s shaky crypto ETF debuts dent global hub aspirations
OpenAI, Reddit sign partnership on ChatGPT, AI products, ads
US Fed officials suggest interest rates should stay high for longer
Oil up after US economic data strengthens rate cut expectations
Europe: Shares snap nine-day winning streak as Siemens weighs
US: Stocks dip after Dow tops 40,000 for first time