OUE REIT maintains 2HFY2023 DPU at 1.04 cents

 

OUE REIT, the newly-renamed OUE LJ3 2.68% Commercial REIT TS0U -3.57% , has maintained its 2HFY2023 distribution at 1.04 cents per unit. 

 

Revenue in the same six months ended Dec 31 2023 was up 16.4% over the year-earlier period and its net property income increased by 15.9% y-o-y.

 

However, the amount available for distribution was weighed down by higher finance costs. The REIT held back a bigger quantum for working capital its share of joint venture results dropped as well.

 

The 2HFY2023 DPU brings its full-year distribution to 2.09 cents, down 1.4% y-o-y. Revenue for the full year was up 18% y-o-y to $285.1 million, with growth driven by the full reopening of its key hotel asset, Hilton Singapore Orchard. Net property income, meanwhile, was up 19.3% to $235 million.

 

" Over the past few years, we have successfully built a robust portfolio of commercial and hospitality properties in prime locations under one umbrella and are pleased that this diversified portfolio has allowed us to grow from strength to strength," says Han Khim Siew, CEO of the REIT' s manager.

 

" Postpandemic, our hospitality segment has been the key growth engine and has achieved remarkable performance following the successful rebranding of Hilton Singapore Orchard," he adds.

 

In a bid to better capture the continued tourism recovery, OUE REIT in December last year completed the $22 million asset enhancement initiative for another hospitality asset, for Crowne Plaza Changi Airport.

 

The REIT will focus on both organic and inorganic growth across both the hospitality and commercial sectors in Singapore, and abroad. It will be looking at " suitable portfolio reconstitution opportunities,&rdquo he adds.

 

Due to active debt management, the REIT has no refinancing needs until the second half of 2025. 

 

As of Dec 31 2023, its aggregate leverage decreased to 38.2% while the weighted average cost of debt remained stable at 4.3% per annum. 

 

The proportion of fixed-rate debt remains high at 66.3% and the weighted average term of debt stood at 2.4 years as of December 31 2023.

OUE posts 54.6% decline in net profit on lower fair value of investments

 

PROPERTY developer OUE : LJ3 0% reported a 54.6 per cent decrease in net profit to S$40.2 million for the half year ended Jun 30, 2023, from S$88.7 million in the corresponding period a year ago.

 

The decline in net profit came despite a 53.3 per cent rise in revenue to S$304.5 million, from S$198.7 million a year ago.

 

In a bourse filing on Monday (Aug 7), the group said that the year-on-year decline in net profit was mainly due to a lower share of results of equity-accounted investees, higher finance expenses, lower net change in fair value of investments designated at fair value through profit or loss as well as lower net change in fair value of investment properties.

 

Still, the group saw higher revenue contribution across all its business segments.

 

Its real estate segment saw revenue grow 46 per cent to S$205 million as all three divisions under the segment grew.

 

Revenue from the investment properties division rose 12.7 per cent to S$101.3 million, while revenue from the development properties division surged to S$8 million from S$0.2 million due to the completion of three units at OUE Twin Peaks.

 

The group added that its core central business district grade A office vacancy rates in Singapore stood at 4 per cent as office rents rose.

 

&ldquo The demand-supply dynamics will likely keep rents and occupancies stable for the rest of the year,&rdquo it said.

 

However, the group cautioned that the real estate sector in China is expected to remain sluggish despite policy support from the government.

 

The return of tourism and the meetings, incentives, conventions and exhibitions sector also led revenue from the hospitality division to rise by almost two-fold to S$95.8 million.

 

The group added that the launch of the Orchard Wing at Hilton Singapore Orchard this year drove the revenue increase, and that it expects the tourism sector to recover to pre-pandemic levels in 2024.

 

Meanwhile, revenue from the OUE&rsquo s healthcare segment grew 79.1 per cent to S$79.8 million as it was the first full period contribution from First Real Estate Investment Trust (Reit), which was accounted for as a subsidiary since Mar 1, 2022, as well as the medical partnership with three medical specialist groups in Singapore, which began in Jun 30, 2022.

 

The group has declared an interim dividend of S$0.01 per share, which is unchanged from what it declared for the same period a year earlier. It is payable on Sep 28, after books close on Sep 15.

OUE posts 54.6% decline in net profit on lower fair value of investments

 

PROPERTY developer OUE : LJ3 0% reported a 54.6 per cent decrease in net profit to S$40.2 million for the half year ended Jun 30, 2023, from S$88.7 million in the corresponding period a year ago.

 

The decline in net profit came despite a 53.3 per cent rise in revenue to S$304.5 million, from S$198.7 million a year ago.

 

In a bourse filing on Monday (Aug 7), the group said that the year-on-year decline in net profit was mainly due to a lower share of results of equity-accounted investees, higher finance expenses, lower net change in fair value of investments designated at fair value through profit or loss as well as lower net change in fair value of investment properties.

 

Still, the group saw higher revenue contribution across all its business segments.

 

Its real estate segment saw revenue grow 46 per cent to S$205 million as all three divisions under the segment grew.

 

Revenue from the investment properties division rose 12.7 per cent to S$101.3 million, while revenue from the development properties division surged to S$8 million from S$0.2 million due to the completion of three units at OUE Twin Peaks.

 

The group added that its core central business district grade A office vacancy rates in Singapore stood at 4 per cent as office rents rose.

 

&ldquo The demand-supply dynamics will likely keep rents and occupancies stable for the rest of the year,&rdquo it said.

 

However, the group cautioned that the real estate sector in China is expected to remain sluggish despite policy support from the government.

 

The return of tourism and the meetings, incentives, conventions and exhibitions sector also led revenue from the hospitality division to rise by almost two-fold to S$95.8 million.

 

The group added that the launch of the Orchard Wing at Hilton Singapore Orchard this year drove the revenue increase, and that it expects the tourism sector to recover to pre-pandemic levels in 2024.

 

Meanwhile, revenue from the OUE&rsquo s healthcare segment grew 79.1 per cent to S$79.8 million as it was the first full period contribution from First Real Estate Investment Trust (Reit), which was accounted for as a subsidiary since Mar 1, 2022, as well as the medical partnership with three medical specialist groups in Singapore, which began in Jun 30, 2022.

 

The group has declared an interim dividend of S$0.01 per share, which is unchanged from what it declared for the same period a year earlier. It is payable on Sep 28, after books close on Sep 15.