Reasons include stronger hospitality performance and income contribution from Salesforce Tower acquisition
[SINGAPORE] OUE Real Estate Investment Trust’s (Reit) distribution per unit rose 28.6 per cent year on year to S$0.0126, from S$0.0098, for the first half ended Jun 30, 2026.
The improvement was driven by stronger hospitality performance, the income contribution from the acquisition of Salesforce Tower and significantly lower interest expenses resulting from effective capital management, its manager said on Wednesday (Jul 22).
Revenue was up 3.8 per cent at S$136.1 million for the half-year period, from H1 2025’s S$131.1 million. Net property income grew 4.8 per cent on the year to S$110.3 million, from S$105.3 million.
The Reit’s manager attributed the increases to stronger hospitality performance and stable contributions from Singapore’s commercial portfolio.
It also noted that the share of results of joint venture and associate companies increased to S$10.4 million in H1 FY2026. This was on the back of the acquisition of a 19.9 per cent interest in Salesforce Tower, as well as interest cost savings achieved at OUE Bayfront after its successful refinancing completed in August 2025.
The Reit also proposed to divest Crowne Plaza Changi Airport in June 2026. Han Khim Siew, CEO of the manager, said that this would allow it to unlock value from a mature asset ahead of its contractual expiry, materially strengthen its balance sheet and enhance its flexibility to recycle capital into assets with superior risk-adjusted returns.
Together with the Salesforce acquisition, this underscores its “commitment to narrowing the 0.64 times price-to-book gap through proactive value creation and sustainable growth”, he added.
Noting the complex macroeconomic backdrop, Han said that OUE Reit remains well-placed to navigate near-term volatility and capitalise on emerging asset-repricing opportunities.
The amount available for distribution rose to S$69.8 million, up 28.6 per cent from the year-ago period’s S$54.3 million.
OUE Reit pays distributions semi-annually. The H1 distribution will be paid out on Sep 3, after books closure on Jul 30.
The counter closed flat at S$0.365 on Wednesday, before the announcement.
