OUE REIT Posts 4.6% YoY Rise in 3Q 2026 NPI

Accelerating Phase 3 Value Creation Journey

• Net property income ("NPI") rose 4.6% year-on-year ("YoY") to S$59.6 million and revenue increased 3.1% to S$72.6 million
• Finance costs declined 12.4% YoY
• Hospitality revenue increased 12.6% YoY; segment RevPAR rose 8.2%.
• Singapore office rental reversion remained positive at 4.6%
• Crowne Plaza Changi Airport divestment to complete on 30 Oct 2026, unlocking approximately S$498.5 million^[1] of capital, with a S$20 million special distribution expected to commence from FY 2027

SINGAPORE, Oct. 21, 2026 /PRNewswire/ — OUE REIT Management Pte. Ltd., in its capacity as manager (the "Manager") of OUE Real Estate Investment Trust ("OUE REIT"), announces that revenue and NPI increased by 3.1% and 4.6% YoY to S$72.6 million and S$59.6 million respectively, for the financial period 1 July 2026 to 30 September 2026 ("3Q 2026"). The higher revenue and NPI underscored the resilience of OUE REIT’s diversified portfolio, with standout performance in the hospitality segment offsetting lower contributions from the Singapore commercial segment. Benefiting from OUE REIT’s proactive capital management initiatives, finance costs declined by 12.4% YoY.

Distribution income from OUE Bayfront, held through a joint venture, amounted to S$3.6 million, while the successful capital recycling into 180 George Street contributed S$1.6 million in distribution income.^[2]

Mr Han Khim Siew, Chief Executive Officer of the Manager, said, "OUE REIT delivered robust performance in 3Q 2026, reflecting the strength of our barbell strategy across the commercial and hospitality segments. Effective capital management contributed to a substantial reduction in finance costs.

We continue to advance Phase 3 Value Creation Journey through effective capital reallocation, with a focus on progressively reshaping the portfolio towards stronger income quality, greater capital efficiency and sustainable long-term value creation. We have received strong Unitholders’ support to divest Crowne Plaza Changi Airport, which is expected to be completed on 30 October 2026." Mr Han added.

Commercial Segment

For 3Q 2026, OUE REIT’s commercial (office and retail) segment revenue and NPI declined modestly by 2.8% and 1.5% YoY to S$42.4 million and S$32.0 million respectively, reflecting ongoing tenant transition activities at OUE Downtown Office.

Notwithstanding the temporary impact on occupancy, leasing fundamentals for the Singapore office portfolio remained healthy, with positive rental reversion of 4.6% for office lease renewals in 3Q 2026. As of 30 September 2026, committed occupancy and average passing rent remained stable at 91.2% and S$11.06 per square foot ("psf") per month respectively.

The conversion of more than 22,600 square feet ("sq ft") of prime office space at OUE Bayfront remains on track for completion in 1Q 2027. At OUE Downtown Office, Deloitte’s extension of more than 49,000 sq ft of leased space to 4Q 2027 supports tenancy mix optimisation and a phased backfilling strategy ahead of the anticipated influx of new office supply from 2028. While this will result in near-term occupancy moderation over the next 12-15 months, positive leasing demand and asset enhancement initiatives position OUE REIT to capture current market demand and support longer-term performance.

Mandarin Gallery recorded positive rental reversion of 5.9% in 3Q 2026. Committed occupancy increased by 2.0 percentage points, while average passing rent stood at S$22.94 psf per month.

180 George Street was fully committed as of 30 September 2026. Its long weighted average lease expiry of 4.8 years by gross rental income enhances income visibility and resilience for OUE REIT.

Hospitality Segment

Hospitality segment revenue and NPI for 3Q 2026 each increased 12.6% YoY to S$30.3 million and S$27.6 million respectively. The strong performance was driven by leisure demand, corporate account growth, and refreshed guest offerings.

For 3Q 2026, the hospitality segment’s RevPAR increased by 8.2% YoY to S$302. Hilton Singapore Orchard’s RevPAR rose 7.5% YoY on the back of higher occupancy, increased corporate demand from targeted account wins, and resilient transient travel demand.

Proactive Capital Management

As of 30 September 2026, OUE REIT’s weighted average cost of debt remained stable at 3.6% per annum. The debt maturity profile remained well-staggered, with a weighted average term of debt of 2.9 years as of 30 September 2026.

Aggregate leverage was 42.1% as of 30 September 2026. On a pro forma basis, assuming the Crowne Plaza Changi Airport divestment proceeds were used to repay existing loans, aggregate leverage would decline to 37.1%^[3], creating significant debt headroom for future growth opportunities.

The interest coverage ratio, calculated in accordance with the Monetary Authority of Singapore’s guidelines, improved to 2.9x and remained comfortably above bank loan covenants.

In July 2026, OUE REIT secured a new unsecured committed revolving credit facility of up to S$300 million. Together with net cash proceeds from the Crowne Plaza Changi Airport divestment, OUE REIT maintained ample liquidity to support growth initiatives and refinance MTNs maturing in mid-2027 at interest rates of 4.10% and 3.95%.

Market Outlook

Singapore

Office

According to CBRE, Singapore’s Core CBD (Grade A) office market remained resilient in 3Q 2026, with occupancy setting another record high of 97.4% and rents rising 2.0% QoQ to S$12.75 psf per month, marking the seventh consecutive quarter of rental growth. Leasing demand remained broad-based, supported by financial services occupiers and artificial intelligence companies, which continue to upgrade from flexible workspaces to dedicated office spaces in prime office buildings. With limited new supply in the Core CBD (Grade A) until 2028, competition for quality office space is expected to remain strong.

Looking ahead, Singapore’s office market is expected to remain supportive despite ongoing global trade uncertainties, energy market volatility and inflationary pressures. Underpinned by resilient occupier demand and a constrained supply pipeline, the market continues to exhibit favourable landlord dynamics. With occupancy levels remaining strong and demand for quality office space staying broad-based, leasing momentum is expected to remain healthy. CBRE projects Core CBD (Grade A) office rents to grow by more than 5% in FY 2026, supported by limited new supply and sustained demand for quality workspace.

Against this backdrop, OUE REIT expects positive rental reversions to continue, although near-term occupancy may remain moderated by ongoing lease rejuvenation and tenant transition activities. Anchored by a fully green-certified office portfolio in prime CBD locations, OUE REIT is well placed to capture ongoing flight-to-quality dynamics and rising demand for environmentally sustainable office space.

Retail

Orchard Road retail performance remained resilient in 3Q 2026 despite softer consumer spending and tourism arrivals. Leasing demand was driven by F&B and fashion brands, while landlords continued to optimise asset performance through alternative uses and repositioning initiatives amid an increasingly competitive retail landscape. Against this backdrop, prime retail rents in Orchard Road grew by 0.4% QoQ to S$39.05 psf per month in 3Q 2026.

Supported by tourism spending, office-worker footfall and limited future supply, prime retail rents continued to edge higher across all submarkets. While retailers face ongoing cost pressures and e-commerce competition, stable demand fundamentals are expected to support further rental growth. CBRE Research forecasts prime retail rents to grow by 1% to 2% for the full year of 2026.

The Manager remains focused on enhancing asset vibrancy and tenant sales through proactive tenant curation and a well-balanced trade mix. By continuously refreshing the retail offering, we aim to sustain footfall, deepen shopper engagement and strengthen long-term asset performance.

Hospitality

According to the Singapore Tourism Board, international visitor arrivals decreased slightly by 1.7% YoY to 12.7 million from January to September 2026. For the remainder of 2026, hospitality demand will be supported by a stable lineup of marquee events, including the Milken Institute Asia Summit, the Formula 1 Singapore Grand Prix ("F1"), and major concerts featuring internationally recognised names such as The Killers and Lana Del Rey during the F1 season, The Weeknd and Guns N’ Roses, as well as popular K-pop groups including BIGBANG and BTS. Notably, the F1 is scheduled outside of China’s Golden Week this year, which is expected to support a more sustained distribution of visitor demand across the period. New and refreshed attractions, including the expanded Mandai Rainforest Wild Adventure and new live entertainment venues such as Live Nation’s Grange Road Events Space, further broaden Singapore’s appeal across both leisure and MICE segments.

Supply conditions remain favourable, with new hotel supply expected to grow at a measured pace of 1.6% per annum between 2026 and 2028, well below the pre-pandemic five-year historical average of 4.4%.

OUE REIT expects hospitality demand to remain supportive and will continue to deepen corporate partnerships, broaden its leisure customer base and enhance guest offerings such as sustainable MICE packages, diversified F&B menus, and themed family suites to sustain occupancy and RevPAR performance.

Sydney, Australia

According to JLL Research, Sydney’s CBD office market continued to demonstrate resilience in 3Q 2026, with prime occupancy edging up to 86.9%. Prime gross face rents increased by 1.4% QoQ, reflecting healthy underlying market fundamentals. Premium-grade assets continued to outperform, recording occupancy of 90.8% compared with 84.0% for Grade A assets, supported by occupiers’ ongoing preference for high-quality and well-located office space. Looking ahead, the supply outlook remains favourable, with no new office completions scheduled in 2026 and leasing interest for upcoming developments remaining healthy.

With 180 George Street now fully committed, the asset is expected to provide a stable and recurring revenue stream to OUE REIT, underpinned by its premium positioning, high-quality tenant base, and long lease profile. OUE REIT will continue to focus on tenant retention and proactive occupier engagement to support sustainable performance.

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$6.1 billion^[4].

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 seven high-quality office, hospitality and retail assets located in Singapore and Australia. Rooted in Singapore, OUE REIT’s 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.

The latest addition to OUE REIT’s portfolio is 180 George Street (also known as Salesforce Tower), Sydney, a premium-grade commercial asset in which OUE REIT holds a 19.9% interest. Comprising 666,437 sq ft of NLA, 180 George Street is strategically situated in Circular Quay, one of Sydney’s key corporate and cultural precincts. As Sydney’s tallest office tower, 180 George Street is a landmark asset that strengthens the portfolio’s exposure to high-quality office real estate in a prime gateway city.

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 2025, OUE’s total assets were valued at S$8.4 billion, with S$7.3 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, China and Myanmar.

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.

Source : OUE REIT Posts 4.6% YoY Rise in 3Q 2026 NPI

The information provided in this article was created by Cision PR Newswire, our news partner. The author's opinions and the content shared on this page are their own and may not necessarily represent the perspectives of Siam News Network.