OUE Commercial REIT's OUE Bayfront in Singapore. (Photo: REITsWeek)OUE Commercial REIT's OUE Bayfront in Singapore. (Photo: REITsWeek)

Singapore-listed office REIT, OUE Commercial REIT (SGX:TS0U), announced on 27 January that it has recorded a distribution per unit (DPU) of 1.36 Singapore cents for its 4Q 2015, which is 20.4% higher than the 1.13 cents forecast at IPO.

Similarly net property income (NPI) of SGD29.7 million was 6.6% higher than forecast due to higher gross revenue while amount available for distribution for 4Q 2015 was SGD17.6 million, exceeding forecast by 21.1%.

The REIT has attributed the income figures to better operating performance across the portfolio, augmented by lower utilities costs incurred by OUE Bayfront and One Raffles Place.

For FY2015, OUE Commercial REIT’s NPI of SGD75.6 million was also 40.5% higher than the previous financial year due to better operating performance by OUE Bayfront and Lippo Plaza, and contribution from One Raffles Place from October 2015, said the REIT.
As at 31 December 2015, committed office occupancy at OUE Bayfront and Lippo Plaza was 98.2% and 99.2% respectively, while One Raffles Place had a committed office occupancy of 90.1%. As such aggregate portfolio occupancy was at 94.3%.

The REIT also revealed that it commenced asset enhancement initiatives at Lippo Plaza from 4Q 2015.

The REIT’s aggregate leverage was 40.1% as at 31 December 2015, with an average cost of debt of 3.45% per annum. About 63.8% of the REIT’s interest rate exposure is hedged into fixed rates, with an average term of fixed rate debt of 3.20 years as at 31 December 2015. Weighted average lease expiry (WALE) was 2.7 years by net lettable income and 2.9 years by gross rental income.

Units of OUE Commercial REIT are currently listed on the Singapore Exchange at SGD0.63.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.