- OUE REIT (SGX:TS0U)'s 1Q25 revenue and NPI fell 11.9% and 12.1% y-o-y to S$66.0m and S$53.2m, constituting 23.9% and 24.5% of our initial full year forecasts, respectively.
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Weakness in hospitality segment more pronounced than previously expected.
- The remainder of the decline was driven by the hospitality segment, which saw revenue and NPI plunge 13.3% and 12.5% to S$23.3m and S$20.8m, respectively.
- Revenue per available room (RevPAR) was down 11.2% y-o-y at S$248, dragged by Hilton Singapore Orchard (-19.1% y-o-y) which saw lower occupancy as visitor arrivals slide in the absence of Taylor Swift’s concerts and weak Chinese demand.
Still expecting mid-single-digit rental reversions for the commercial segment this year, notwithstanding tariff uncertainty.
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- The retail portfolio also saw committed occupancy improve, albeit by a smaller 1.3 ppt q-o-q to 99.5%, with rental reversions of +4.9%.
Aggregate leverage at 40.6%.
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