The merger between OUE Commercial REIT and OUE Hospitality Trust seems to be beneficial. On 30th January 2020, OUE Commercial REIT announced its first financial results (4Q2019) after the merger with OUE Hospitality Trust.
Gross Revenue improved 80.7% to S$86.8 million and Net Property Income (“NPI”) increased by 92.6% to S$70.6 million. These are good financial figures that can never be achieved by OUE Hospitality Trust alone.
Higher net property income and the drawdown of OUE Downtown Office’s income support was partially offset by higher interest expenses in 4Q 2019 from higher borrowings which resulted in amount available for distribution of S$46.6 million.
As S$1.1 million was retained by the manager for working capital purposes, S$45.1 million was available for distribution. This translates to a Distribution Per Unit (“DPU”) of S$0.84 cents which was 12% higher compared to 4Q2018.
4Q2019 Financial Results 4Q2019
(S$’mil) Change Gross Revenue 86.8