OUE Commercial REIT's OUE Downtown (Photo: REITsWeek)

OUE Commercial REIT has reported a distribution per unit (DPU) of 0.90 Singapore cents for its 1Q 2019, a fall of 19.6% year-on-year.

When re-stated to include the 1,288,438,981 new units issued on 30 October 2018 pursuant to the rights issue, DPU for the quarter would have been an increase of 47.5%.

The REIT’s net property income in 1Q 2019 was SGD43.6 million, an increase of 23.5% year-on-year due primarily to a full quarter’s contribution from OUE Downtown Office.

This was augmented by one-off income from OUE Bayfront, and One Raffles Place.

Amount available for distribution in 1Q 2019 was SGD26.0 million, 49.5% higher year-on-year.

As at 31 March 2019, committed office occupancy at both OUE Bayfront and One Raffles Place was at 97.1% and 96.5% respectively, ahead of Singapore’s core CBD occupancy of 95.2%.

Meanwhile, Lippo Plaza’s committed office occupancy of 90.4% as at 1Q 2019 was ahead of overall Shanghai CBD Grade A market occupancy of 87.6% for the same period.

Committed rents at Lippo Plaza remains either in line with, or higher than market rates, said the REIT.

Its aggregate leverage ratio as at 31 March 2019 remained stable at 39.4%.

OUE Commercial REIT finished its trading day about 1% higher from its previous close on the Singapore Exchange, to end at SGD0.50.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.