OUE REIT’s hospitality segment revenue and net property income each rose 12.6% year-on-year in the third quarter of 2026, to S$30.3 million and S$27.6 million respectively. Segment RevPAR increased 8.2% to S$302, while Hilton Singapore Orchard’s RevPAR rose 7.5%. The gains helped lift the trust’s overall net property income 4.6% to S$59.6 million.
Finance costs fell 12.4% year-on-year, which OUE REIT said reflected its capital management initiatives. Distribution income from OUE Bayfront, held through a joint venture, came to S$3.6 million, while 180 George Street in Sydney contributed S$1.6 million in distribution income.
Han Khim Siew, chief executive officer of the manager, described the quarter’s performance and the trust’s strategic direction.
“OUE REIT delivered robust performance in 3Q 2026, reflecting the strength of our barbell strategy across the commercial and hospitality segments,” Han said. “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.”
Hospitality segment gains
Hospitality segment revenue and net property income each rose 12.6% year-on-year to S$30.3 million and S$27.6 million respectively. OUE REIT said the increase was driven by leisure demand, corporate account growth and refreshed guest offerings. Segment RevPAR increased 8.2% year-on-year to S$302, with Hilton Singapore Orchard’s RevPAR up 7.5% on higher occupancy and corporate demand.
The divestment of Crowne Plaza Changi Airport is set to complete on 30 October 2026, unlocking approximately S$498.5 million in capital. OUE REIT said a special distribution of S$20 million is expected to commence from the 2027 financial year.
Commercial segment and capital position
Commercial segment revenue and net property income declined 2.8% and 1.5% year-on-year respectively to S$42.4 million and S$32.0 million, which OUE REIT linked to tenant transition activities at OUE Downtown Office. Singapore office rental reversion remained positive at 4.6% for the quarter, with committed occupancy at 91.2% and average passing rent at S$11.06 per square foot per month as of 30 September 2026. Mandarin Gallery recorded rental reversion of 5.9%, while 180 George Street in Sydney was fully committed as of the same date.
As of 30 September 2026, OUE REIT’s weighted average cost of debt stood at 3.6% per annum and aggregate leverage was 42.1%. The trust said aggregate leverage would fall to 37.1% on a pro forma basis if divestment proceeds from Crowne Plaza Changi Airport were used to repay existing loans. In July 2026, OUE REIT secured a new unsecured committed revolving credit facility of up to S$300 million.
