- Stable operations, lower finance cost - OUE REIT (SGX:TS0U)’s 3Q25 update reflects a stable top line with same-store NPI growth of 2% and a 19.7% decline in finance expenses. Its operating trend is relatively unchanged with stable occupancy for Singapore commercial assets and continued but moderated decline in hotel RevPARs.
- - Read this at SGinvestors.io -
Operating trends unchanged
- 3Q25 revenue and NPI were S$70.5m and S$57m, -5.8% and -5.6% y-o-y respectively. The decline was mainly due to divestment of Lippo Plaza. On a same-store basis, revenue and NPI grew 1.2% and 2% y-o-y respectively, led by resilient performance of its Singapore-centric portfolio.
- - Read this at SGinvestors.io -
- Management is in active discussion with tenants for large leases coming up for renewal in FY26 (~25% of gross rental income), though frictional downtime and additional capex may not be ruled out.
- Hotels saw continued RevPAR decline of 5.7% y-o-y spread across both Hilton Singapore Orchard (HSO) and Crowne Plaza, Changi Airport. The new management for HSO is likely to result in stable performance and 2-5% RevPAR growth for FY26E.
Cost of debt continues to fall
- Read more at SGinvestors.io.
