OUE CT amasses gains in 2Q14

Distributable income and DPU came in higher than expected.

OUE Commercial Trust maintains attractive statistics as it overshot expectations by registering $12.5 million distributable income and 1.43 cents DPU, 5.5% and 5.1% higher than expected.

A report by OCBC Investment Research shows that the company’s overall portfolio occupancy remained healthy at 96.8% as management indicates that only 2.9% of the portfolio is up for renewal over the next half of the year.

Here’s more from OCBC:

OUE Bayfront remains 100% occupied as at 2Q14, with average passing rents for the office component increasing to S$10.66 psf from S$10.61 psf last quarter. Management reports that newly committed rents over the quarter for OUE. Bayfront ranged from S$11.50 to S$15.20 psf which is, on average, 6.1% higher than preceding rentals. Lippo Plaza saw its occupancy rate dip QoQ to 92.9% as at end Jun-14 from 95.9% due to some tenants not renewing their leases, though renewal rents in 2Q14 still showed a 4.3% increase versus preceding rents.

OUE-CT’s aggregate leverage dipped slightly to 39.5% (versus 40.8% as at end Mar-14) while average cost of debt edged up to 2.59%. Management has indicated that they are focused on executing and stabilizing existing portfolio assets in FY14 and will only expect their first acquisition to come in FY15 and after.