OUE REIT has reported a net property income (NPI) of $53.2 million for the 1QFY2025 ended March 31, 2025, down 12.1% y-o-y.
The REIT's revenue for the quarter came in at $66 million, down 11.9% y-o-y.
The REIT says that this decrease in NPI and revenue is mainly due to the divestment of Lippo Plaza in Shanghai and lower contributions from the hospitality segment due to a weaker trading environment compared to the year before.
The REIT says that on a like-for-like basis, which includes adjustment to exclude Lippo Plaza Shanghai, its NPI and revenue declined by 4.1% y-o-y and 3.9% y-o-y respectively.
Commercial segment revenue and NPI increased by 2.2% y-o-y for the 1QFY2025, on a like-for-like basis, due to improvement in operating performance across the 100% Singapore-based portfolio.
As at March 31, 2025, the REIT's office portfolio achieved a committed occupancy at 96.3% and a positive rental reversion of 9.9% for office lease renewals in 1QFY2025.
See also: Mapletree Industrial Trust reports slightly higher DPU for FY2024/2025 of 13.57 cents
The average passing rent rose by 0.5% q-o-q to $10.77 per square foot (psf) per month in March 2025.
Overall hospitality segment revenue per average room (RevPAR) for 1QFY2025 moderated to $248.
The REIT's weighted average cost of debt as at March 31, 2025 came in at 4.2% per annum compared to 4.7% in the quarter before.
See also: Jardine Cycle & Carriage reports lower contribution from most of its businesses for 1Q2025
Aggregate leverage stood at 40.6% as at March 31, 2025, and weighted average term of debt stood at 2.8 years.
About 74.7% of the total debt has been hedged, and interest coverage ratio remained stable at 2.1 times.
The group remains "cautiously optimistic" in its outlook for FY2025 after an "uninspiring" 1Q2025. Despite upcoming concert line-ups, macroeconomic uncertainties and competition from more affordable regional destinations will continue to weigh on tourists' preferences and travel appetites.
Units in OUE REIT closed flat at 27.5 cents on Apr 24.
