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OUE Commercial REIT - OCBC Investment 2022-05-17: Relaunch Of Hilton Singapore Orchard

OUE COMMERCIAL REIT (SGX:TS0U) | SGinvestors.io OUE COMMERCIAL REIT (SGX:TS0U)

OUE Commercial REIT - Relaunch Of Hilton Singapore Orchard

  • Lower rental rebates of S$1.1m.
  • Hospitality revenue per available room (RevPAR) grew 0.3% q-o-q.
  • Committed occupancy of commercial portfolio at 91.2%.



OUECT's 1Q22 business update

  • OUE Commercial REIT (SGX:TS0U) announced its 1Q22 business update. Revenue fell 20.3% y-o-y to S$59.5m, while NPI dropped 21.5% y-o-y to S$48.0m during the quarter, attributable to the divestment of a 50% stake in OUE Bayfront and partially offset by lower rental rebates and property expenses.


Shopper traffic and tenant sales improved to ~80% of pre-COVID levels in Mar 2022

  • Revenue and NPI of OUE Commercial REIT’s commercial portfolio fell 26.2% and 29.5% y-o-y respectively in 1Q22, mainly due to deconsolidation of OUE Bayfront’s performance post-divestment, partially offset by lower rental rebates of S$1.1m versus S$2.6m in 1Q21 to selected retail tenants.
  • As of 31 Mar 2022, committed occupancy of commercial portfolio fell 0.3 ppt q-o-q to 91.2%, due to weaker office committed occupancy in Singapore (-0.4 ppt to 90.8%) while Mandarin Gallery’s committed occupancy increase 2 ppt q-o-q to 88.7%.
  • In Mar 2022, both shopper traffic and tenant sales had improved to ~80% of pre-COVID levels for Mandarin Gallery.
  • Leasing demand in Shanghai was affected by the Chinese New Year and the COVID-19 outbreak. Management is likely to provide rental rebates to the affected F&B tenants at Lippo Plaza (contributed ~3% of 1Q22 revenue).


Mandarin Orchard was relaunched as Hilton Singapore Orchard






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2022-05-17
SGX Stock Analyst Report BUY UPGRADE HOLD 0.44 UP 0.410



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