OUE C-REIT Announces Q1 2022 Amount Available For Distribution Of S$31.2 Million (US$22.37 Million)
May 13, 2022 – OUE Commercial Real Estate Investment Trust announced a net property income of S$48 million (US$34.3 million) for the financial period 1 January 2022 to 31 March 2022 (Q1 2022), representing a decrease of 21.5% year-on-year mainly due to the deconsolidation of OUE Bayfront’s performance post the divestment of a 50% interest in the property on 31 March 2021.
The net property income decrease was partially mitigated by lower rental rebates and lower property expenses. Including the drawdown of income support at OUE Downtown Office, share of joint venture results of OUE Bayfront and lower interest expense, amount available for distribution was 15.8% lower YoY at S$31.2 million.
Mr Han Khim Siew, Chief Executive Officer of the Manager, said, “We are pleased to have completed the re-branding of one of OUE C-REIT’s landmark assets into the Hilton Singapore Orchard during the quarter, in time to ride on the recovery in Singapore’s hospitality sector.”
“As the Hilton brand’s flagship hotel in Singapore and its largest in Asia Pacific, we are confident the property is in a strong position to cater to corporate and leisure demand for rooms and MICE events. Mandarin Gallery’s shopper traffic and sales have also received a boost from the relaunch of Orchard Road’s latest lifestyle destination, rebounding to approximately 80% of pre-pandemic levels.”
“Post quarter, OUE C-REIT issued S$100 million 4.20% fixed rate notes due 2027 with a coupon step-down of 25 basis points upon re-rating to investment grade, a first in Singapore. This is in line with our proactive capital management approach to ensure OUE C-REIT has access to diversified funding sources while managing refinancing requirements and optimising the cost of debt.”
“We are confident of being assigned an investment grade rating for OUE C-REIT within the next 18 months,” added Mr Han.
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