Revenue rose by 19.8% y-o-y to $138.8 million with the recovery in Singapore’s tourism sector and y-o-y growth in the REIT’s operational performance.
NPI also rose by 23.1% y-o-y to $115.3 million in line with the higher revenue.
As at June 30, the REIT’s committed occupancy of its Singapore office properties stood at 96.1%. Rental reversion came in at a positive 8.1%, up 1.4 percentage points q-o-q.
In Shanghai, the REIT’s Lippo Plaza reported an office occupancy of 86.6% as at June 30, up 11.4 percentage points q-o-q.
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Its committed occupancy for Mandarin Gallery under its retail portfolio stood at 98.0% as at June 30.
In hospitality, revenue per available room (RevPAR) rose by 34.3% y-o-y to $232 due to higher room rates on the back of the recovery in the tourism sector.
The REIT’s overall weighted average lease expiry (WALE) stood at 3.1 years by gross rental income (GRI).
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Aggregate leverage stood stable at 39.1% as at June 30.
Cash and cash equivalents stood at $64.0 million as at the same period.
“We are pleased to report that OUE C-REIT’s hospitality segment is performing above pre-Covid levels, supported by the ongoing recovery of Singapore’s tourism sector. The commercial segment also remains healthy, with stable or improving occupancies and continued positive rental reversions. While finance costs continue to present headwinds due to high interest rates, the impact on distributions is mitigated by the portfolio’s healthy revenue and NPI growth, as well as our prudent capital management approach,” says Han Khim Siew, CEO of the manager.
Looking ahead, the overall retail rents are expected to continue recovering in 2023. Meanwhile, an increasing supply of offices in Shanghai may lead to rents to remain under pressure, according to Colliers.
“In response to the intensified competition, the manager remains focused on prioritising occupancy at Lippo Plaza while simultaneously positioning for the gradual market recovery,” says the REIT.
Unitholders will receive their DPUs on Aug 25.
Units in OUE C-REIT closed 0.5 cents lower or 1.61% down at 30.5 cents on July 26.
