OUE Commercial REIT's Crowne Plaza Changi Airport. (Photo: REITsWeek)

OUE Commercial REIT (OUE C-REIT) has declared a clean-up distribution amount of SGD15.4 million for the period from 1 July 2019 to the day immediately preceding its merger with OUE Hospitality Trust, 3 September 2019.

This translates to a distribution per unit (DPU) of 0.53 Singapore cents.

As at 30 September 2019, OUE C-REIT’s commercial portfolio committed occupancy was at 95.2%, increasing 0.7 percentage points quarter- on-quarter.

Its aggregate leverage as at 30 September 2019 was 40.5%.

The weighted average cost of debt was at 3.5% per annum, while the average term of debt was 2.4 years.

“While Singapore office rental growth has stabilised in 3Q 2019, OUE C-REIT’s portfolio continues to deliver positive rental reversions as committed renewal rents were higher than expiring rents”, said the REIT.

All office properties in Singapore reported positive rental reversions during the quarter of between 8.1% and 14.1%, as rents for renewed leases were higher than expiring rents in 3Q 2019, it added.

“Going forward, the manager will continue to focus on optimising office rents and occupancy levels so as to maximise rental performance of OUE C-REIT’s commercial portfolio”, the REIT added.

OUE C-REIT’s hospitality portfolio recorded an increase of 3.3% year-on-year in RevPAR to SGD224 in 3Q 2019.

The better overall performance was supported by higher demand and higher room rates at Crowne Plaza Changi Airport, while Mandarin Orchard Singapore maintained a stable performance, said the REIT.

“The hospitality market is poised to benefit from strategic investments in tourism infrastructure by the Singapore government while limited new hotel supply is expected to support the sector”, it added.

Information from OUE C-REIT’s results have been updated into the Singapore REITs fundamentals table.

By Shariffa Al-Habshee

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