OUE Commercial REIT's revenue and NPI in 1QFY2023 boosted by Hilton Singapore
OUE Commercial REIT's 1QFY2023 revenue and NPI were boosted by Hilton Singapore
OUE Commercial REIT’s revenue rose by 14.9% y-o-y and net property income in increased 18.0% y-o-y to $56.6 million in 1QFY2023. Much of the gain was from the hospitality segment as revenue rose 30% y-o-y to $21 million.
Hospitality RevPAR doubled y-o-y to $227 on the back of higher room rates supported by the ongoing recovery in the hospitality sector. On January 1 this year, Hilton Singapore Orchard reopened the 446-room Orchard Wing. With the full inventory of 1,080 rooms compared to only 634 rooms available for booking from February 24, 2022, Hilton Singapore Orchard’s RevPAR grew by 2.4 times y-o-y to $233 for the quarter. Meanwhile, Crowne Plaza Changi Airport’s RevPAR has recovered to pre-pandemic levels, increasing by 71.4% y-o-y, to $216.
Mandarin Gallery’s shopper traffic remained below pre-Covid levels during the first quarter. However rental reversions during the quarter rose by 11.6%.
The REIT’s office portfolio’s committed occupancy rose by 1.2 percentage points q-o-q during the first quarter, to 96.7%. Positive rental reversion of 6.7% was recorded for office leases in 1Q2023 and average passing rent for the portfolio rose 1.6% q-o-q to $10.26 psf per month as of March.
Lippo Plaza in Shanghai’s occupancy dropped by 4.7 ppt q-o-q to 75.2% due to competition.
Aggregate leverage as at March 31 was 39% with some 69.4% of debt fixed. Weighted average cost of debt was 3.8%. The REIT has no refinancing due till 2024.
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