OUE Bayfront Sees Greater Office Occupancy

OUE Bayfront Sees Greater Office Occupancy Than One Raffles Place

SINGAPORE – OUE Commercial REIT revealed that OUE Bayfront enjoyed a robust committed office occupancy rate of 99.3 percent as of 31 March 2022, according to the latest business update published on the local bourse on Thursday evening (12 May, SGT).

In comparison, the committed office occupancy level in One Raffles Place was unchanged at 88.2 percent, while that in OUE Downtown Office dropped to 87.8 percent during the same period. The figures only pertain to the office component of the aforementioned commercial properties.

Notably, OUE Bayfront has 378,801 sq ft of office space by net leasable area (NLA). OUE Downtown Office has 529,297 sq ft, while One Raffles Place has 605,529 sq ft of office space. These three represents the REIT’s office assets in Singapore.

In terms of office rents, average expired office rents in OUE Downtown Office, One Raffles Place, and OUE Bayfront stood at S$8.68, S$10.50, and S$12.93 respectively. Rental reversions came at -5.9 percent, 1.2 percent and 2.5 percent respectively during the period under review.

Average passing rents for all Singapore office properties were stable as at Q1 2022, said OUE Commercial REIT’s manager.

Notably, OUE Commercial REIT holds a 50 percent stake in OUE Bayfront, 67.95 percent in One Raffles Place, and a 100 percent interest in OUE Downtown Office.

Meanwhile, the trust disclosed that its net property income (NPI) fell 21.5 percent year-on-year to S$48.0 million in Q1 2022 following the sale of a half-stake in OUE Bayfront last year.

Nonetheless, the drop in NPI was partially mitigated by lower rental rebates and lower real estate expenses. Also, the trust’s office properties continue to be the primary income generator, accounting for 55.8 percent of the REIT’s revenue as of the first quarter of the year.

Including the drawdown of OUE Downtown Office income support, share of joint venture results from OUE Bayfront and lower interest expense, the amount available for distribution was S$31.2 million, down 15.8 percent on an annual basis, added the REIT’s manager.

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