SINGAPORE (Oct 31): OUE Commercial REIT (OUE C-REIT) has achieved a DPU of 1.40 cents for the 3Q14 ended Sept, 2.9% higher than its IPO forecast.

The DPU translates into a distribution yield of 7.0%, based on OUE C-REIT’s closing price of 79.5 cents on Sept 30.

Distributable income came in at $12.2 million.

Net property income and gross revenue came in at $14.9 million and $19.4 million, 6.3% and 1.8% higher than forecast.

OUE C-REIT says portfolio occupancy rose to 97.2% from 96.8% a quarter ago, on the back of improved occupancy at Lippo Plaza from 93.6% to 94.4%.

OUE Bayfront maintained full occupancy.

Year to date, office renewal rates at OUE Bayfront were 10.2% higher than preceding rents, while Lippo Plaza recorded office rental reversions of 5.6% over the same period.

OUE C-REIT says as core CBD vacancy in Singapore continues to tighten in view of limited new office supply, Grade A office rents are expected to continue to rise.

This would be positive for OUE Bayfront, which accounts for about 70% of OUE C-REIT’s portfolio.

The outlook for Shanghai CBD office is also expected to be stable, it adds.

OUE C-REIT closed 0.6% higher at 80.5 cents today.