OUE REIT achieves 2HFY2025 DPU of 1.25 cents, up 10.6% y-o-y

OUE REIT attributes the DPU growth to resilient operating performance across its portfolio, which includes One Raffles Place (pictured, on the right) (Picture: Samuel Isaac Chua/EdgeProp Singapore)

OUE Real Estate Investment Trust (OUE REIT) has announced its financial results for its 2HFY2025 ended 31 December 2025, with distribution per unit (DPU) rising 10.6% y-o-y to 1.25 cents for the period. The growth was driven by resilient operating performance across its Singapore-centric portfolio and proactive capital management, which allowed the REIT to benefit from a declining interest rate environment. Excluding capital distributions, core DPU surged 15.7% y-o-y.

Headline revenue and net property income (NPI) declined 4.2% and 2.3% y-o-y to $142.5 million and $114.24 million in 2HFY2025, mainly due to the absence of revenue contributions from Lippo Plaza Shanghai, which was divested in FY2024. However, like-for-like revenue and NPI increased by 2.9% and 5.2% y-o-y, reflecting strong performance in the Singapore commercial portfolio and the hospitality segment.

For FY2025, OUE REIT's DPU is 2.23 cents, representing an 8.3% increase y-o-y.

For the commercial segment, revenue and NPI grew 4.2% and 5.7% y-o-y on a like-for-like basis, supported by higher average passing rents across all office assets. As of December 2025, the OUE REIT's office portfolio had an occupancy of 95.4%, up 0.1 percentage points q-o-q, while avergae passing rent rose 0.6% q-o-q to $10.97 psf per month.

For the hospitality segment, revenue and NPI for 2HFY2025 rose by 0.9% and 4.5% y-o-y. OUE REIT's manager attributes the stable performance to proactive revenue management and a strong calendar of high-profile concerts, which drove occupancy at its hotel properties.

CEO Han Khim Siew comments, “Amid heightened macroeconomic uncertainty and geopolitical tensions, our purposefully constructed Singapore-centric, high-quality, prime-located portfolio delivered resilient income performance. It was complemented by our successful divestment of Lippo Plaza Shanghai in 2024, which mitigated exposure to the continued weakness in the Shanghai office market.”

Looking ahead, OUE REIT aims to optimise asset performance and selectively deploy capital into prime gateway assets, including targeted opportunities in Sydney.