SINGAPORE - OUE Reit’s distribution per unit stayed flat year on year at 1.04 cents for the second half of its financial year ended Dec 31, 2023, its manager reported on Jan 29.

This was even as the revenue of the real estate investment trust (Reit) rose 16.4 per cent year on year to $146.3 million, from $125.7 million.

Net property income for the half year grew 15.9 per cent year on year to $119.7 million, from $103.3 million.

The manager attributed the higher revenue and net property income to the strong operational performance of its Singapore portfolio, driven by the full-room inventory of Hilton Singapore Orchard.

“Stable occupancies and rental growth achieved at OUE Reit’s other commercial properties also contributed to the growth,” said the manager.

Distributable income climbed 10.8 per cent year on year to $57.7 million, from $52.1 million in the corresponding year-ago period.

The distribution will be paid out on Feb 28, after the books are closed on Feb 6.

Meanwhile, for the full year ended Dec 31, 2023, OUE Reit’s DPU was lower at 2.09 cents, from 2.12 cents the previous year; distributable income grew 3.3 per cent to $115.3 million.

Revenue was 18 per cent higher at $285.1 million, and net property income rose 19.3 per cent to $235 million for the full year.

As at Dec 31, 2023, the valuation of the Reit’s properties increased 1.7 per cent year on year to $6.3 billion, driven mainly by higher valuations for its hotel properties, which benefited from the significantly improved hospitality sector post-pandemic.

The valuation of its Singapore offices remained stable, supported by positive rental reversion achieved during the year, said the manager.

Macroeconomic uncertainties continue to weigh on Singapore’s economy, but the manager of the Reit remains confident that OUE Reit’s prime portfolio of hospitality and commercial assets will continue to clock a “stable performance” for unit holders.

In the commercial sector, OUE Reit plans to leverage the prime locations and well-diversified tenant mix of its green-certified, core Grade-A office assets to capitalise on the continued demand for green-certified buildings.

And with global air travel volume expected to make a full recovery early this year, OUE Reit’s hospitality assets are “well-positioned to capitalise on the anticipated increase in tourists and business travellers in 2024 and beyond”, said its manager.

Units of OUE Reit closed at 28.5 cents on Tuesday, up half a cent. THE BUSINESS TIMES