OUE C-REIT net property income slips l.6% to $61.1m

While its commercial portfolio remained resilient, OUE C-REIT's hospotality business took a hit in the first quarter.

OUE Commercial REIT reported a 1.6% slip in its net property income to $61.1m for the first quarter of 2021.

In a bourse disclosure, the property firm attributed this loss to rental rebates to selected retail tenants, offset partially by lower property operating expenses.

"OUE C-REIT’s portfolio remains resilient, with income stability underpinned by the Singapore office properties which have continued to achieve positive rental reversions during the quarter. While weprovidedrental rebates to selected retail tenantswho continuedto face challenges due to restrictions on short-term visitors and operating capacity, thequantum for the first halfof2021 is expected to be lower compared to the prior half-year," said OUE C-REIT CEO Tan Shu Lin.

For its commercial portfolio, its office segment net property income fell by 5.0% to $57.8m, whilst its retail segment fell by 3.0% to $45.7m.

Approximately $2.6m of rental rebates were extended to select retail tenants during the quarter as challenges remain for businesses dependent on office-based employees and short-term visitors.

Its commited property in the commercial segment was at 91.7%, 0.8 percentage points lower than last quarter.

Its hospitality segment had a net property income of $16.9m, the minimum rent under the master lease agreements of all its hotel properties. This is 3.0% higher than the income for the same quarter last year due to lower property operating expenses.