OUE REIT Management Pte. Ltd., the manager of OUE Real Estate Investment Trust (OUE REIT), has announced a resilient operational performance for the third quarter of 2025. Despite a year-on-year decline in overall revenue and net property income (NPI) due to the divestment of Lippo Plaza Shanghai, both metrics increased on a like-for-like basis by 1.2% and 2.0% respectively, driven by the strength of its Singapore-centric portfolio.
The commercial segment, comprising office and retail properties, saw revenue and NPI rise by 4.2% and 3.8% year-on-year, supported by prime locations in Singapore. The hospitality segment remained stable, with a slight NPI decline of 0.4% due to the rescheduling of the F1 Singapore Grand Prix. Finance costs saw a significant reduction of 19.7% year-on-year, attributed to disciplined capital management and a decrease in the Singapore Overnight Rate Average.
Chief Executive Officer Han Khim Siew highlighted the portfolio’s resilience amid economic uncertainties, noting, “Our prime commercial assets achieved positive rent reversions and sustained high occupancy.” The Singapore office portfolio recorded a positive rental reversion of 9.3% for lease renewals, whilst Mandarin Gallery, a retail asset, achieved a positive rental reversion of 5.6%.
Looking ahead, OUE REIT aims to optimise asset performance and explore value-creation opportunities. With a focus on tenant retention and proactive market engagement, the trust is well-positioned to capture trends in the Singapore office and retail markets. The issuance of S$150m in Green Notes further strengthens its financial position, extending the average term of debt and reducing future obligations.
