OUE REIT (SGX:TS0U) reported 1H DPU of 0.93 cents, -10.6% h-o-h/-11.4% y-o-y. Low single-digit top-line growth and capital top-ups were offset by higher financing cost, higher level of retained income and payment of management fees in cash.
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Gearing was stable but borrowing cost rose q-o-q. OUE REIT's management is focussed on active asset and capital management. while waiting for right growth opportunities.
Singapore offsets weakness in Shanghai office
OUE REIT's 1H24 revenue and NPI grew 5.7% and 1.6% y-o-y, respectively. Revenue from commercial properties rose 2.2% y-o-y. However, higher property taxes and utility costs resulted in 0.9% y-o-y NPI decline.
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Retail is steady, though rent reversion will normalize. Lippo Plaza Shanghai remains challenging due to high supply. Focus in on occupancy (Office 76.2%). Passing rent inched down.
Hospitality segment saw revenue and NPI growth of 12.9% and 5.9% y-o-y, respectively. This was led by RevPAR growth of 15.8% y-o-y to S$269. RevPAR was flat h-o-h and down from prior quarter. Hilton Singapore Orchard saw a decline in RevPAR whereas Crowne Plaza Changi was stable.
Prudent capital management
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Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
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