- OUE REIT's 3Q24 business update saw net property income down 3.7% y-o-y. Higher property taxes for hotels, lower contribution from Lippo Plaza Shanghai and high base effect for hotels from prior year led to the decline.
Stable performance; mixed drivers
- - Read this at SGinvestors.io -
- Among sub-segments, net property income for commercial grew 0.3% y-o-y. This was due to better cost management despite a 1.1% drop in revenue. NPI for hotels fell 8.9% y-o-y (-3.2% excluding impact of taxes).
Singapore office occupancy inched up
- Singapore office occupancy inched up to 95.4% from 95.2%; accompanied by +10.8% rent reversion (+11.7% in 2Q). Mandarin Gallery occupancy fell to 95.3% (vs. 97.7% in 2Q) and reversion was +16% (2Q +28.4%). Office in Lippo Plaza Shanghai saw occupancy weaken further along with negative reversions.
Hotel RevPAR stayed relatively flat
- - Read this at SGinvestors.io -
- RevPAR for Crowne Plaza Changi Airport was up 30.3% to S$259 as AEI affected performance last year.
Focus on tenant retention
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank.com/ 2024-10-24
Previous report by Maybank:
2024-07-26 OUE REIT - Growing Top Line; DPU Lower On Financing Cost.
Price targets by 2 other brokers at OUE REIT Target Prices.
Listing of research reports at OUE REIT Analyst Reports.
Relevant links:
OUE REIT Share Price History,
OUE REIT Announcements,
OUE REIT Dividends & Corporate Actions,
OUE REIT News Articles
