OUE Commercial REIT's Q3 earnings up 127% to $35.3m

One Raffles Place did well.

OUE Commercial REIT achieved higher gross revenue of $44.2 million in 3Q 2016, mainly due to contribution from One Raffles Place which was acquired in October 2015, as well as improved performance at OUE Bayfront and Lippo Plaza.

The group stated in their announcement that higher property operating expenses were incurred due to the inclusion of One Raffles Place's expenses, which were partially offset by lower property tax at OUE Bayfront and lower leasing commissions at Lippo Plaza.

One Raffles Place did well.

OUE Commercial REIT achieved higher gross revenue of $44.2 million in 3Q 2016, mainly due to contribution from One Raffles Place which was acquired in October 2015, as well as improved performance at OUE Bayfront and Lippo Plaza.

The group stated in their announcement that higher property operating expenses were incurred due to the inclusion of One Raffles Place's expenses, which were partially offset by lower property tax at OUE Bayfront and lower leasing commissions at Lippo Plaza.

On back of contributions from One Raffles Place.

OUE Commercial REIT achieved higher gross revenue of $44.2 million in 3Q 2016, mainly due to contribution from One Raffles Place which was acquired in October 2015, as well as improved performance at OUE Bayfront and Lippo Plaza.

The group stated in their announcement that higher property operating expenses were incurred due to the inclusion of One Raffles Place's expenses, which were partially offset by lower property tax at OUE Bayfront and lower leasing commissions at Lippo Plaza.

"As a result, 3Q 2016 net property income was $35.3 million, increasing from $15.6 million in 3Q 2015," OUE C-REIT said.

OUE C-REIT Management CEO Tan Shu Lin said despite the lacklustre office market, the group delivered strong set of results in the said quarter.

"We are pleased to report a 29.4% year-on-year increase in DPU of 1.32 cents. While the increase in distribution was underpinned by contribution from One Raffles Place, healthy organic growth of 8.5% in 3Q 2016 net property income from the initial portfolio comprising OUE Bayfront and Lippo Plaza also boosted earnings," Tan explained.

He underscored that portfolio commited occupancy was stable at 94.4% compared to 94.5% a quarter ago, with higher average passing rents at all three properties year-on-year despite declining market rents, attesting to the resilience of OUE C-REIT's portfolio.

"Notwithstanding the challenging operating environment, the Manager will continue its proactive efforts to attract new tenants as well as retain existing tenants. Together with our prudent and disciplined approach to capital management, we remain focused on delivering stable and sustainable returns for our Unitholders,” Tan stressed.