OUE C-REIT’s distributable income drops 3.3% YoY to $57.6m in 1H23

This translates to a 2.8% YoY lower distribution per unit.

Despite recording a higher gross revenue and net property income (NPI) in 1H23, OUE Commercial REIT’s (OUE C-REIT) distributable income still fell by 3.3% YoY to $57.6m.

In a bourse filing, the REIT explained that |higher year-on-year financial costs from the elevated interest rate environment and the absence of income support for the OUE Downtown Office” drove the decline in its distributable income for the half-year period.

Given the lower distributable income, the REIT’s distribution per unit also fell in 1H23, dropping by 2.8% YoY to $0.0105.

On the flip side, the REIT recorded a 19.8% YoY increase in its revenue ($138.8m) and a 23.1% YoY improvement in its NPI ($115.3m).

The REIT attributed the increases in its revenue and NPI to the recovery in Singapore’s tourism sector and YoY improvements in operational performance for its portfolio.