However, FY18 DPU dropped 3.9% to 3.48 cents from 3.62 cents in FY17, despite a 1.9% y-o-y increase in amount distributable to unitholders to $71.3 million, due to 1.289 million new units issued on Oct 30, 2018 at 45.6 cents per unit pursuant to the rights issue.
Revenue for the quarter increased by 9.2% to $48.0 million, compared to $44.0 million a year ago, due mainly to the consolidation of OUE Downtown Office’s income since Nov 2018.
As property operating expenses rose 22.7% y-o-y to $11.4 million y-o-y, net property income (NPI) stood at $36.6 million, 5.6% higher than $34.7 million last year.
Other income increased significantly to $3.96 million from $1.0 million in the previous year, with the inclusion of income support in relation to OUE Downtown Office from the Sponsor Group.
As at end-Dec, the REIT’s cash and cash equivalents stood at $37.1 million.
As at Dec 31, 2018, committed office occupancy at OUE Bayfront and One Raffles Place remained at 97.6% and 97.1% respectively, significantly ahead of Singapore core CBD occupancy of 94.8%.
Lippo Plaza’s committed office occupancy of 93.2% as at 4Q 2018 remained above the overall Shanghai CBD Grade A market occupancy of 90.0%, while committed rents continued to be higher than market rates.
Tan Shu Lin, CEO of the manager, says, “The manager will continue to focus its efforts on proactive asset management, as well as maintain a prudent and disciplined stance towards to capital management, so as to deliver stable and sustainable returns for unitholders.”
Units in OUE C-REIT closed at 49 cents on Wednesday.
