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.

Key strategies

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

  1. Maximising Operational Performance
  2. Growth Through Quality Acquisitions
  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. 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, to strive to improve operational and cost efficiency to ensure optimal building performance without compromising on the safety or comfort of tenants, and to collaborate effectively with the master lessees to ensure that hotel managers optimise the performance of the hotels.

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

Growth Through Quality Acquisitions

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.

OUE C-REIT’s Right Of First Refusal (“ROFR”) over its Sponsor’s income-producing commercial1, hospitality and/or integrated development properties potentially provides a visible pipeline which will enhance its growth profile. In addition to sourcing third-party acquisitions on its own, the Manager also leverages the Sponsor’s experience and network of contacts to source potentially value-adding acquisitions.

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