OUE Commercial Reit posts better-than-expected results

OUE Bayfront in Collyer Quay, part of OUE Commercial Reit's portfolio. -- PHOTO: OUE BAYFRONT 
OUE Bayfront in Collyer Quay, part of OUE Commercial Reit's portfolio. -- PHOTO: OUE BAYFRONT 

SINGAPORE - OUE Commercial Reit (OUE C-Reit) posted a distribution to unitholders of $45.9 million for the year ended Dec 31, beating the forecast in its initial public offering by 4.5 per cent.

This translates to a distribution per unit (DPU) of 5.27 cents for the year, which is 4.4 per cent higher than forecasted.

DPU for the three months ended Dec 31 came in at 1.44 cents, up 5.1 per cent from the forecast.

This represents an annualised distribution yield of 7 per cent, based on the Reit's closing price of 80.5 cents on Dec 31.

The Reit pays out its distribution twice a year, and its second distribution for the second half of last year, at 2.84 cents, will be paid out to unitholders on Feb 27.

Gross revenue for the year came in at $71.5 million, a 3.6 per cent increase over the forecast, thanks to "better-than-expected occupancy and rental reversions" at its properties, said the Reit manager in a statement on Monday.

Net property income was also 7 per cent ahead of the forecast at $53.8 million, mainly due to higher gross revenue and lower utilities expenses, it added.

The Reit's portfolio, comprising OUE Bayfront in Collyer Quay and Lippo Plaza in Shanghai, was valued at $1.6 billion as at Dec 31. This translates to a net asset value per unit of $1.10.