- OUE Commercial REIT (SGX:TS0U) reported strong recovery in the hospitality segment.
- All Singapore office properties reported positive rental reversions.
- ~S$0.9m of rental rebates were extended to Lippo Plaza in 3Q22.
OUECT's 3Q22 business update
- - Read this at SGinvestors.io -
- As of 30 Sep 2022, 69.2% of OUE Commercial REIT’s debt was hedged on fixed rate which is slightly below its target range or 70-75%. OUE Commercial REIT has no further refinancing requirements until Sep 2023.
Singapore office properties reported positive rental reversions ranging from 1.6%-9.2%
- - Read this at SGinvestors.io -
- Approximately S$0.9m of rental rebates were extended to Lippo Plaza’s retail tenants as retail business remained challenging in Shanghai post the lockdown.
- As of 30 Sep 2022, committed occupancy of Singapore office rose 2.5 ppt q-o-q to 95.4%. OUE Commercial REIT’s Singapore office properties reported positive rental reversions ranging from 1.6% to 9.2%. Core CBD Grade A office rental growth is expected to remain positive for the rest of 2022 and 2023 due to the limited supply pipeline, barring a sustained recession.
- Conversely, Lippo Plaza’s committed office occupancy declined 2.1 ppt to 85.6% which is below the average occupancy rate of 90.4% for Shanghai CBD Grade A office. Rental reversion for Lippo Plaza weakened from -1.7% in 2Q22 to -5.4% in 3Q22.
- Separately, Mandarin Gallery’s occupancy dipped slightly by 1.1 ppt to 89.2% while rental reversion came in at 9.2% in 3Q22 as management continued to focus on optimising rents while sustaining occupancy.
Hospitality RevPAR rose 15.5% q-o-q to S$262
- Read more at SGinvestors.io.
