Strategy

Objective

The Manager’s objective is to provide Unitholders with regular and stable distributions and to achieve long-term sustainable growth in DPU and NAV per Unit, while maintaining an appropriate capital structure.

The Manager plans to achieve its objective through the following strategies:

Key strategies

  1. Maximising Operational Performance
  2. Value-Enhancing Investment Management
  3. Proactive Capital and Risk Management

Maximising Operational Performance

The Manager actively manages OUE C-REIT’s property portfolio and strives to maintain high occupancy levels and optimise rental growth, so as to achieve sustainable revenue and net property income. For the commercial(1) segment, the Manager is focused on working in partnership with the respective property managers that manage OUE C-REIT’s property portfolio to build strong and long-lasting relationships with tenants, as well as striving to improve operational and cost efficiency to ensure optimal building performance without compromising on the safety or comfort of tenants. For the hospitality segment, the Manager collaborates effectively with the master lessees to ensure that hotel managers optimise the performance of the hotels.

To support and enhance organic growth, the Manager also seeks asset enhancement opportunities where feasible.

Value Enhancing Investment Management

The Manager aims to pursue investment opportunities in key gateway cities with strong real estate fundamentals and growth potential, to provide attractive cash flows and yields to improve future income and capital growth to Unitholders.

The right of first refusal over the Sponsor’s income-producing commercial(1), hospitality and/or integrated development properties provides OUE C-REIT with access to potential future acquisition opportunities. In addition to sourcing third-party acquisitions on its own, the Manager also leverages the Sponsor’s experience and network of contacts to source value-adding acquisitions.

The Manager also seeks to capitalise on opportunities for portfolio reconstitution where appropriate, by unlocking value from existing assets at an optimal stage of their life cycle and redeploying divestment proceeds into higher-yielding properties or other value-creating opportunities to enhance long-term returns.

Proactive Capital and Risk Management

The Manager adopts a prudent capital management strategy and strives to maintain a strong balance sheet. By employing an appropriate combination of debt and equity, the Manager seeks to optimise OUE C-REIT’s capital structure to deliver regular and stable distributions to Unitholders.

Key objectives of its capital management strategy include optimising the cost of debt financing and managing potential refinancing or repayment risks, as well as ensuring OUE C-REIT has access to diversified funding sources. Appropriate hedging strategies to manage interest rate volatility and foreign exchange exposure are also adopted.

  1. Includes office and/or retail