• [ 메디채널 황정호 기자 ] 2H 2025 Core DPU (excluding capital distribution^[1]) increased by 15.7% YoY, mainly driven by resilient operating performance across all assets and proactive capital management in a declining interest rate environment
• 2H 2025 finance costs declined significantly by 18.0% YoY
• Commercial segment like-for-like^[2] ("LfL") revenue and NPI increased by 4.2% and 5.7% YoY for 2H 2025
• Hospitality segment NPI increased by 4.5% YoY for 2H 2025, with RevPAR remaining unchanged at S$277 in 2H 2025 compared to 2H 2024

 

SINGAPORE, Jan. 26, 2026 -- OUE REIT Management Pte. Ltd., in its capacity as manager (the "Manager") of OUE Real Estate Investment Trust ("OUE REIT"), wishes to announce that the Distribution per Unit ("DPU") increased by 10.6% year-on-year ("YoY") to 1.25 Singapore cents for the financial period 1 July 2025 to 31 December 2025 ("2H 2025"). The robust performance was mainly driven by continued resilient operating performance across the portfolio, alongside a strengthened capital structure, which allowed OUE REIT to benefit from the lower interest rate environment. Excluding the capital distribution^[1] released in the second half of 2024 ("2H 2024"), core DPU increased by 15.7% YoY.

 

Revenue and net property income ("NPI") for 2H 2025 were S$142.5 million and S$114.2 million respectively, representing YoY declines of 4.2% and 2.3% respectively mainly due to the absence of revenue contributions from Lippo Plaza Shanghai which was divested at an opportune time in FY 2024. On a LfL basis^[2], revenue and NPI increased by 2.9% and 5.2% YoY respectively, underpinned by strong operating performance in the Singapore commercial portfolio and improved performance in the hospitality segment in 2H 2025.

 

For the financial year ended 31 December 2025 ("FY 2025"), the amount to be distributed was S$123.8 million with DPU of 2.23 Singapore cents. Based on OUE REIT's unit closing price of S$0.360 as of the last trading day in 2025, the FY 2025 distribution yield was 6.2%, compared to 7.2% based on a unit closing price of S$0.285 as of the last trading day in FY 2024.

 

OUE REIT's distribution policy is to distribute at least 90% of its taxable income to its Unitholders on a semi-annual basis, with the actual level of distribution to be determined at the Manager's discretion.

 

Summary of OUE REIT's Group Results

 

As of 31 December 2025, the valuation of OUE REIT's properties decreased slightly by 1.2% YoY to S$5,082.0 million. The decline was primarily due to lower valuations of the hotel and retail assets, which were partially offset by higher valuations of the office properties. Consequently, net asset value per Unit stood at S$0.56 as of 31 December 2025.

 

Mr Han Khim Siew, Chief Executive Officer of the Manager, said, "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. Our proactive capital management over the past three years further positioned OUE REIT to benefit from the faster-than-expected decline in Singapore Overnight Rate Average ("SORA"), supporting our robust DPU growth."

 

"While volatility in the global outlook persists, we remain encouraged by the strong underlying fundamentals of the Singapore market. Looking ahead, we will continue to optimise asset performance and actively enhance our portfolio through disciplined capital recycling and selective deployment into prime gateway assets, including targeted opportunities in Sydney. Sydney's core prime business district currently presents an attractive combination of growth potential, and a favourable risk-reward profile. Anchored by a proactive capital allocation strategy, we remain focused on delivering sustainable long-term growth for our Unitholders," Mr. Han concluded.

 

Commercial Segment

 

For 2H 2025, OUE REIT's commercial (office and retail) segment delivered revenue and NPI growth of 4.2% and 5.7% YoY to S$87.8 million and S$65.2 million respectively on a LfL basis^[3]. The continued strong performance reflected the resilience of the all-Singapore portfolio, supported by higher average passing rents across all office assets.

 

As of December 2025, OUE REIT's office portfolio committed occupancy inched up 0.1 percentage points ("ppt") quarter-on-quarter ("QoQ") to 95.4%. Average passing rent continued to rise 0.6% QoQ to reach S$10.97 per square foot ("psf") per month. For FY 2025, positive rental reversion remained strong at 9.1% for office lease renewals (4Q 2025: 8.8%).

 

Mandarin Gallery's operating metrics remain stable, with a positive reversion of 12.4% in FY 2025. Committed occupancy edged lower to 95.7%, reflecting a cautious leasing environment and the ongoing redesignation of selected spaces for place-making initiatives, while average passing rent remained stable at S$22.45 psf per month.

 

Hospitality Segment

 

Hospitality segment revenue and net property income for 2H 2025 slightly increased by 0.9% and 4.5% YoY to S$54.7 million and S$49.0 million respectively. The stable performance was driven by proactive revenue management, alongside a stronger calendar of high-profile concerts, including performances by G-Dragon (BIGBANG), Elton John, BLACKPINK and Jacky Cheung, which helped cushion the impact of the Formula One week coinciding with the Golden Week holiday period in FY 2025.

 

For 2H 2025, overall hospitality RevPAR remained unchanged at S$277. Hilton Singapore Orchard's RevPAR in 2H 2025 increased slightly by 0.3% YoY to S$289 while Crowne Plaza Changi Airport stood at S$254.

 

Proactive Capital Management

 

As of 31 December 2025, OUE REIT's weighted average cost of debt decreased to 3.9% per annum ("p.a.") compared to 4.7% p.a. as of 31 December 2024. The aggregate leverage declined to 38.5% as of 31 December 2025.

 

Following the successful issuance of S$150 million 7-year investment-grade Green Notes at 2.75% in October 2025, the weighted average term of debt extended to 3.3 years as of 31 December 2025. The interest coverage ratio calculated according to the Monetary Authority of Singapore's guidelines improved to 2.4x – comfortably above bank loan covenants. Assuming a 25 basis points decrease in interest rates, DPU would increase by 0.02 Singapore cents.

 

In alignment with delivering long-term sustainability in DPU, the Manager has elected to receive 50% of its base management fees in cash, with the balance in Units of OUE REIT for 2H 2025.

 

Outlook

 

Office

 

According to CBRE, Singapore's Core CBD (Grade A) office market closed FY 2025 with strong momentum. Core CBD (Grade A) office rents rose 2.9% YoY to S$12.30 psf in FY 2025, significantly outperforming the modest 0.4% increase recorded in FY 2024. This was underpinned by a tightening vacancy environment, with Core CBD (Grade A) vacancy improving to 4.5% in 4Q 2025 from 5.1% in the preceding quarter. Leasing activity continued to be supported by a sustained flight-to-quality trend, with occupiers prioritising premium, ESG-compliant buildings. Singapore's safe-haven status amid heightened global uncertainty further reinforced occupier demand.

 

Looking ahead to 2026, market conditions are expected to turn increasingly landlord-favourable, as large contiguous floor plates remain scarce, with Shaw Towers being the only major office completion scheduled. Against this backdrop of tight availability and resilient demand from the financial and technology sectors, CBRE projects office rental growth to accelerate to approximately 5% YoY in FY 2026.

 

OUE REIT will focus on optimising portfolio outcomes through disciplined tenant retention and close engagement with occupiers to address evolving workspace requirements. Anchored by a fully green-certified portfolio in prime CBD locations, the REIT is well placed to capture ongoing flight-to-quality dynamics and rising demand for environmentally sustainable office space.

 

Retail

 

The Singapore retail market continued its upward trajectory in 4Q 2025, supported by improving consumer sentiment amid stronger-than-expected GDP growth and a stable labour market. Leasing activity remained resilient, particularly across the food and beverage, beauty and health, and lifestyle segments, even as selective store closures persisted in other categories. Against this backdrop, Orchard Road retail rents rose by 0.4% QoQ to S$38.50 psf per month in 4Q 2025.

 

Looking ahead to FY 2026, the outlook remains constructive, albeit with a moderation in growth. While retailers continue to face headwinds from manpower constraints and elevated operating costs, new retail supply is expected to remain broadly in line with historical averages. In this environment, CBRE Research projects overall prime retail rents to grow by approximately 1% to 2% in FY 2026.

 

To enhance asset vibrancy and tenant performance for the retail segment, the Manager continues curating immersive, experience-led activations in collaboration with strategic partners, aimed at driving sustained footfall and shopper engagement.

 

Hospitality

 

From January to November 2025, international visitor arrivals ("IVA") grew 2.7% YoY to 15.5 million, with the Singapore Tourism Board projecting IVA to reach between 17.0 and 18.5 million in 2025.

 

For 2026, hospitality demand will be supported by the return of the biennial Singapore Airshow and complemented by a steady lineup of concerts, featuring internationally recognised bands such as Air Supply and popular K-pop groups including Super Junior, ATEEZ and BTS. At the same time, supply conditions remain supportive, with no significant new hotel openings along Orchard Road and new hotel supply expected to grow at a measured pace of 1.7% p.a. between 2025 and 2027, well below the pre-pandemic five-year historical average of 4.4%, creating a constructive operating environment for the hospitality sector.

 

In the hospitality segment, OUE REIT works closely with Hilton Singapore Orchard and Crowne Plaza Changi Airport to sharpen corporate, meetings and event strategies, enhancing lead conversion and supporting revenue growth. Marketing efforts are being further strengthened through a broader suite of targeted initiatives, including media familiarisation programmes with key opinion leaders, refreshed food and beverage offerings with more frequent menu updates, deeper penetration of the wedding and meetings segments through enhanced halal dining options, and the optimisation of family-oriented themed suites to attract a more diversified guest profile.

 

About OUE REIT

 

OUE Real Estate Investment Trust ("OUE REIT"), formerly known as OUE Commercial Real Estate Investment Trust, is one of the largest diversified Singapore REITs ("S-REITs") with total assets under management of S$5.8 billion as of 31 December 2025.

 

OUE REIT aims to deliver stable distributions and provide sustainable long-term growth in return to holders of units ("Unitholders") by investing in income-producing real estate used primarily for hospitality, retail and/or office purposes in financial and business hubs, as well as real estate-related assets.

 

OUE REIT's portfolio comprises six high-quality office, hospitality and retail assets located in Singapore. Its three office assets - OUE Bayfront, One Raffles Place and OUE Downtown Office - are situated within the Central Business District, with a total Net Lettable Area ("NLA") of approximately 1.7 million square feet ("sq ft").

 

OUE REIT's two hotels, Hilton Singapore Orchard and Crowne Plaza Changi Airport, are strategically located along the prime Orchard Road belt and within the Changi Airport vicinity, offering a total of 1,655 upper upscale hotel rooms. Complementing Hilton Singapore Orchard is Mandarin Gallery, a 126,283 sq ft high-end retail mall that has been a preferred destination for international brands in the heart of Orchard Road.

 

Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 27 January 2014, OUE REIT is managed by OUE REIT Management Pte. Ltd. (the "Manager"), a wholly owned subsidiary of OUE Limited (the "Sponsor"). The Sponsor is a leading real estate and healthcare group, growing strategically to capitalise on growth trends across Asia. Its real estate activities include the development, investment and management of real estate assets across the commercial, hospitality, retail, residential and healthcare sectors.

 

For more information, please visit www.ouereit.com.

 

About the Sponsor: OUE Limited

 

OUE Limited (SGX:LJ3) is a leading real estate and healthcare group, growing strategically to capitalise on growth trends across Asia. Incorporated in 1964 and listed in 1969, OUE has a proven track record of developing and managing prime real estate assets, with a portfolio spanning the commercial, hospitality, retail and residential sectors.

 

OUE manages two SGX-listed REITs: OUE REIT, one of Singapore's largest diversified REITs, and First REIT (a subsidiary of OUE Healthcare), Singapore's first listed healthcare REIT. As at 31 December 2024, OUE's total assets were valued at S$8.9 billion, with S$7.8 billion in funds under management across OUE's two REIT platforms and managed accounts.

 

OUE Healthcare, an SGX Catalist-listed subsidiary of OUE, operates and owns high-quality healthcare assets in high-growth Asian markets. With a vision of creating a regional healthcare ecosystem that is anchored on Singapore's medical best practices, OUE Healthcare's portfolio of owned and operated businesses includes hospitals, medical centres, clinics and senior care facilities in Singapore, Japan, Indonesia and China.

 

Anchored by its "Transformational Thinking" philosophy, OUE has built a strong reputation for developing iconic projects, transforming communities, providing exceptional service to customers and delivering long-term value to stakeholders.

 

For more information, please visit www.oue.com.sg.

 

IMPORTANT NOTICE

 

The value of units in OUE REIT ("Units") and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. The past performance of OUE REIT is not necessarily indicative of the future performance of OUE REIT.

 

Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units through trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

 

This press release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits, and training costs), property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager's current view of future events.

 

Any discrepancies in the figures included in this press release between the listed amounts and the totals thereof are due to rounding. Accordingly, figures shown as totals in this press release may not be an arithmetic aggregation of the figures that precede them.

 

The information and opinions contained in this press release are subject to change without notice.