OUE REIT has reported a distribution per unit (DPU) of 0.98 cents for the 1HFY2025 ended June 30, up 5.4% y-o-y.
Excluding the $2.5 million capital distribution from the divestment of OUE Bayfront that was released in the first half of 2024, core DPU increased by 11.4% y-o-y, says the REIT.
The REIT reported a net property income of $131.1 million and revenue of $105.3 million for the 1HFY2025, a 10.6% y-o-y and 10.1% y-o-y decline respectively. This is due to the absence of revenue contributions from Lippo Plaza Shanghai.
For 1HFY2025, share of joint venture results increased by 41.0% y-o-y to $6.3 million.
By segment, the REIT saw higher revenue for its commercial segment which achieved higher average passing rent across all assets. As of June, the Singapore office portfolio committed occupancy stood at 95.5%, with average passing rent increasing by 0.8% q-o-q to $10.86 per square foot (psf) per month. Positive rental reversion remained strong at 9.1% for office lease renewals in 2Q2025.
The REIT’s hospitality segment saw a decline for 1HFY2025, due to high base in the same period last year that was driven by the commencement of the China-Singapore visa-free arrangement and a strong calendar of high-profile concerts and MICE events, along with subdued demand amid macroeconomic headwinds and heightened geopolitical tensions that impacted discretionary spending.
See also: SingPost reports 60% lower operating profit in 1QFY2026 business update
For 1HFY2025, the hospitality segment’s revenue per available room (RevPAR) stood at $233. Crowne Plaza Changi Airport’s RevPAR rose by 4.8% y-o-y to $239, Hilton Singapore Orchard's RevPAR moderated to $230 due to a normalisation of room rates and occupancy following last year’s high base, as well as increased hotel room supply in Singapore’s central area.
The REIT’s aggregate leverage decreased 30 basis points to 40.3% as at June 30, and weighted average cost of debt remained unchanged at 4.2% per annum.
The weighted average term of debt remained at 2.7 years as at June 30, 2025, and 71.1% of the total debt has been hedged. The interest coverage ratio stood at 2.2 times.
See also: SATS earnings up 9.1% y-o-y to $70.9 mil for 1QFY2025
Han Khim Siew, CEO of the office of the manager, says that the REIT’s Singapore-centric portfolio continues to demonstrate income resilience amid heightened macroeconomic uncertainties.
“At the same time, our disciplined capital management, coupled with the decline in the SingaporeOvernight Rate Average (SORA) has enabled us to significantly reduce financing costs and support DPU growth. Looking ahead, ongoing concerns over the economic outlook and geopolitical tensions will continue to weigh on leasing sentiment and travel spending. In response, our team will remain focused on optimising asset performance while actively exploring new value creation opportunities to deliver sustainable return for our unitholders.” says Han.
Units in OUE REIT closed flat at 31 cents on July 23.
