OUE REIT’s net property income up 15.9% to $119.7m in H2 2023

Hilton Singapore Orchard’s full reopening helped drive OUE REIT’s profits in 2023.

OUE Real Estate Investment Trust (OUE REIT) saw its net property income rise to $119.7m in the second half of 2023, its latest financial report showed. This is 15.9% higher than in the last six months of 2022.

The REIT attributed this to strong operation performance of its Singapore businesses, particularly by the full room inventory of 1,080 rooms of Hilton Singapore Orchard– compared to just 634 rooms operations in FY2022.

Stable occupancies and rental growth achieved at OUE REIT’s other commercial properties also contributed to the growth, it added.

Portfolio valuation rose by 1.7% YoY to over $6.27b as of 31 December 2023, thanks to higher valuations of its hotel properties and stable valuation of properties in Singapore.

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Overall hospitality segment revenue and NPI increased 48.5% and 52.2% YoY respectively during the period. 

Committed occupancy of Singapore office properties remained healthy at 95.2% as of 31 December 2023, buoyed by positive rental reversions of 12.0% in FY2023, OUE REIT said. 

More recently, OUE REIT completed the Crowne Plaza Changi Airport asset enhancement in December 2023, and expects a 10% return on investment from the property.