OUE REIT net property income dips 12.1% in Q1 2025

Revenue was also down 11.9%.

OUE REIT revenue and net property income (NPI) fell by 11.9% and 12.1% year-on-year (YoY), respectively, in Q1 2025, attributable to the group’s divestment of Lippo Plaza in Shanghai and lower contributions from the hospitality segment due to a weaker trading environment compared to the previous year.

On a like-for-like basis, revenue and NPI moderately declined by 3.9% and 4.1% YoY, respectively, in Q1 2025. Share of joint venture results, however, increased by 37.8% YoY to $3m compared to Q1 2024.

The group’s commercial (office and retail) segment revenue and NPI increased by 2.2% YoY to $42.7m and $32.3m, respectively, on a like-for-like basis. The increase was primarily driven by continued improvement in operating performance across the 100% Singapore-based portfolio.

As of 31 March 2025, OUE REIT’s office portfolio achieved a high committed occupancy of 96.3% and continued to register a positive rental reversion of 9.9% for office lease renewals in Q1 2025. The average passing rent rose by 0.5% quarter-on-quarter to S$10.77 per square foot per month in March 2025.

Revenue and NPI for the hospitality segment declined by 13.3% and 12.5% YoY to $23.3m and $20.8m, respectively, in Q1 2025. This compares against Q1 2024, which was supported by the commencement of the China-Singapore visa-free arrangement and a strong calendar of high-profile concerts and MICE events.

The hospitality segment’s revenue per available room (RevPAR) stood at $248. Crowne Plaza Changi Airport’s RevPAR rose a robust 8.9% YoY, reaching $24, whilst Hilton Singapore Orchard’s RevPAR moderated to $249.

QUE REIT said that the outlook for FY 2025 remains cautiously optimistic after an uninspiring Q1 2025 with an improved concert line-up including Lady Gaga’s four-night concert in May 2025, as well as performances by G-Dragon (BIGBANG) and Elton John in the F1 week.

However, macroeconomic uncertainties and competition from more affordable regional destinations will continue to weigh on tourists’ preferences and travel appetites. Overall retail rents are projected to recover to pre-pandemic levels by 2025, supported by below-historical-average new supply.