OUE Real Estate Investment Trust on Monday reported a net profit of S$36.6 million for the year ended 31 Dec 2025, swinging from a loss of S$58.9 million a year earlier as finance costs eased and valuation losses narrowed.

Revenue slipped 7.4 per cent year-on-year (YoY) to S$273.6 million. Earnings per unit came in at 0.48 Singapore cent, compared with a loss of 1.28 Singapore cents in FY24. The manager declared a distribution per unit of 1.25 Singapore cents for the July-to-December period, taking the full-year payout to 2.23 cents, up 8.3 per cent. The books close on 3 Feb 2026, with payment slated for 10 Mar 2026.

By segment, commercial assets—One Raffles Place, OUE Downtown Office and Mandarin Gallery—generated S$173.9 million in revenue, down 8.3 per cent YoY, while hospitality assets—Hilton Singapore Orchard and Crowne Plaza Changi Airport—contributed S$99.7 million, 5.9 per cent lower. Net property income fell 6.2 per cent to S$219.6 million, reflecting the December 2024 divestment of Lippo Plaza Shanghai.

Total finance costs dropped 17.6 per cent to S$87.8 million after the trust refinanced higher-cost bank loans with lower-coupon green notes. Fair-value losses on investment properties narrowed to S$75.8 million from S$153.6 million a year earlier.

Looking ahead, the manager noted in its market outlook that tight Grade-A CBD supply and a sustained flight-to-quality trend should support office rents, while a fuller calendar of MICE events is expected to underpin hotel demand. Retail rents along Orchard Road are projected to edge up as leasing momentum continues, despite cost pressures on tenants.

Capital-management priorities include selective reinvestment of proceeds from past divestments, disciplined tenant retention strategies and continued green financing initiatives to lock in interest-cost savings. The aggregate leverage ratio stood at 38.5 per cent at year-end, with an interest-coverage ratio of 2.4 times.