OUE Commercial REIT’s net property income down by 21.5% in Q1

This is due to the OUE Bayfront’s performance.

The net property income of OUE Commercial Reit (OUE C-REIT) declined by 21.5% to 48$m in the first quarter (Q1) of 2022 from $61m in the same period last year.

This was mainly caused by OUE Bayfront’s performance following the divestment of 50% interest in the property on 31 March 2021, the firm said.

Further, the net property income decrease was partially mitigated by the lower rental rebates and lower property expenses. This includes the drawdown of income support at OUE Downtown Office, share of joint venture results of OUE Bayfront, and lower interest expense.

Its revenue also went down by 20.3% from $74m in Q1 2021 to $59.5m in the same quarter this year.

OUE C-REIT Manager’s CEO Han Khim Siew noted the rebranding of OUE C-REIT’s landmark assets into Hilton Singapore Orchard during the quarter to support the hospitality industry’s recovery. 

Post quarter, Han said they issued $100m 4.20% fixed rate notes that will mature in 2027, with a coupon step-down of 25 basis points upon re-rating to investment grade.