OUEHT’s Q4 net property income climbs 7% to $28.8m

Thanks to Crowne Plaza Changi Airport’s contributions.

OUE Hospitality Trust (OUEHT) closed the last quarter of 2015 with a net property income (NPI) of $28.8m. This reflects a 7% climb from 4Q14’s NPI, and is thanks to contributions from Crowne Plaza Changi Airport (CPCA), which was acquired in January 2015.

According to a report by OCBC, although gross revenue climbed 8.6% YoY to $33m, DPU tumbled 4.5% to 1.70 S cents due to a larger unit base. 

For FY15, OUEHT’s gross revenue rose 7.5% to $124.6m, while DPU of 6.55 S cents reflected a 2.8% pullback.

Meanwhile, Mandarin Orchard Singapore recorded a 3.7% YoY slide in revenue per available room (RevPAR) to $236, while RevPAR for CPCA Hotel dipped to $242 from $250.

On the retail front, the average rental reversion figure for leases signed continued to wane as it stood at 2.4% in 4Q15 (versus 6% in 3Q15), despite passing rents for Mandarin Gallery inching up to $24.60 psf per month from $23.60 psf per month.

OCBC notes that looking ahead, the industry prospects remain challenging given the muted macroeconomic environment and competitive pressures from an anticipated spike in new hotel rooms supply.