OUE Real Estate Investment Trust (OUE REIT) has announced a 4.6% year-on-year increase in net property income (NPI) to S$59.6m for the third quarter of 2026, driven by strong performance in its hospitality segment. Revenue also rose by 3.1% to S$72.6m during the same period, highlighting the resilience of its diversified portfolio despite lower contributions from the Singapore commercial segment.
The hospitality segment saw a 12.6% increase in revenue, with a rise in revenue per available room (RevPAR) by 8.2%, reflecting robust leisure demand and corporate account growth. Meanwhile, finance costs decreased by 12.4% year-on-year, benefiting from proactive capital management initiatives.
OUE REIT’s CEO, Han Khim Siew, noted the company’s strategic focus on reshaping its portfolio for stronger income quality and sustainable long-term value creation. The divestment of Crowne Plaza Changi Airport, expected to complete on 30 October 2026, will unlock approximately S$498.5m of capital, with a S$20m special distribution anticipated from FY 2027.
In the commercial segment, revenue and NPI declined by 2.8% and 1.5% respectively, due to tenant transitions at OUE Downtown Office. However, positive rental reversion of 4.6% for office lease renewals and stable occupancy rates indicate healthy leasing fundamentals.
Looking ahead, OUE REIT aims to leverage its green-certified office portfolio to capture demand for sustainable office spaces, whilst maintaining a focus on enhancing asset vibrancy in the retail sector. The company remains well-positioned to navigate market dynamics and pursue growth opportunities.
