Including the pro-rated distribution amount of $2.5 million from the 50% divestment of OUEBayfront in 2021, the amount to be distributed is $51.3 million, 10.9% lower y-o-y.
During the period, revenue grew by 5.7% y-o-y to $146.7 million due to the resilience of Singapore’s commercial properties and higher contributions from the hospitality sector.
Net property income (NPI) was up by 1.6% y-o-y to $117.1 million for the same reasons.
As at June 30, the REIT’s Singapore offices saw a total committed occupancy rate of 95.2% with a positive rental reversion of 11.7%.
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Revenue per available room (RevPAR) for its hospitality segment increased by 15.8% y-o-y to $269 on the back of the continued recovery in tourism.
Mandarin Gallery, the REIT’s retail property, achieved an occupancy of 98.3% with a positive rental reversion of 28.4%.
“The benefits of a diversified Singapore-centric portfolio were evident in 1H 2024. Our commercial assets in Singapore continued to deliver stable income growth and high occupancy. Simultaneously, our two hotels have benefitted from the recovery of Singapore business and leisure tourism, providing attractive returns,” says Han Khim Siew, CEO of the manager.
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“Our proactive and disciplined approach to strengthening our investment grade balance sheet has also placed us in a favourable position to mitigating the impact of the persistent elevated interest rate environment. Looking ahead, prevailing concerns over the economic outlook, inflation and geopolitical risks inevitably pose challenges to our operations. Our team will remain focused on optimising our asset performance and minimising our cost of capital, while prudently and patiently exploring new growth avenues,” he adds.
Unitholders will receive their DPUs on Sept 4.
Units in OUE REIT closed 0.5 cents lower or 1.7% down at 29 cents on July 24.
