- OUE Commercial REIT (SGX:TS0U)'s 3Q23 revenue and NPI grew 27% y-o-y and 30% y-o-y to S$75.8m and S$62.7m, respectively (in line with our estimates), mainly due to higher contributions from Hilton Singapore Orchard.
OUECT's strong sequential q-o-q performance led by hospitality
- - Read this at SGinvestors.io -
- Meanwhile, the commercial portfolio saw a slight decline of 2% q-o-q in NPI, possibly led by Lippo Plaza and higher costs, while its share of JV results (OUE Bayfront) fell 19% q-o-q, possibly due to higher interest cost.
- OUE Commercial REIT's gearing remained relatively stable q-o-q at 39.4%, though the cost of debt inched up to 4.2% vs 4.1% in 2Q23. There are no refinancing requirements until FY25.
Investment grade rating to lower interest rates by 25bps for S$150m notes.
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- Our ballpark estimate is an interest savings of ~0.3% (0.007cents of DPU) per annum for OUE Commercial REIT.
Strong positive reversions; hospitality RevPAR hit record high despite high base in 3Q22
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