OUE Commercial REIT - Annual Report 2021

FINANCIAL REVIEW For FY 2021, OUE C-REIT reported revenue of S$249.9 million, a 14.4% decrease year- on-year (“YoY”) mainly due to the deconsolidation of OUE Bayfront’s performance post divestment of a 50% interest on 31 March 2021 (the “Divestment”). The revenue decrease was partially offset by lower property expenses and lower rental rebates of S$8.5 million to retail tenants in FY 2021. Consequently, net property income was 11.9% lower YoY at S$204.2 million. Including the drawdown of income support at OUE Downtown Office, share of joint venture results of OUE Bayfront and lower interest expense, amount available for distribution in FY 2021 was S$131.6 million, 4.5% lower YoY. With the release of S$5.0 million of distribution which was retained in FY 2020 to preserve financial flexibility given the uncertainties posed by COVID-19 and partial distribution of divestment gain from OUE Bayfront of S$5.4 million, FY 2021 amount to be distributed was S$142.0 million. This translated to FY 2021 DPU of 2.60 cents. FY 2021 DPU would have been 2.35 cents if the income support payments received by OUE C-REIT in relation to OUE Downtown Office were to be excluded. OUE C-REIT’s distribution policy is to distribute at least 90% of its taxable income to its Unitholders on a semi-annual basis, with the actual level of distribution to be determined at the Manager’s discretion. For the period from FY 2014 1 to FY 2021, OUE C-REIT has delivered a compound annual growth rate (“CAGR”) of 16.3% 2 in its distributions to Unitholders. Financial Results FY 2021 (S$’000) FY 2020 (S$’000) Change (%) Revenue 249,884 292,007 (14.4) Net Property Income 204,205 231,890 (11.9) Share of Joint Venture Results 13,236 - NM Amount Available for Distribution 3 131,632 137,822 (4.5) Amount to be Distributed 142,032 4 132,822 5 6.9 DPU (Cents) 2.60 2.43 7.0 NM: Not meaningful Notes: 1 Period from OUE C-REIT’s listing date of 27 January 2014 to 31 December 2014 2 Calculated on the basis of annualised amount available for distribution for the period from OUE C-REIT’s listing date of 27 January 2014 to 31 December 2014 3 Net of retention for working capital requirements relating to the hospitality segment 4 Included the release of S$5.0 million of distribution retained in FY 2020 and S$5.4 million of capital gain distribution from the Divestment 5 To preserve financial flexibility due to the uncertainties posed by the COVID-19 pandemic, S$5.0 million of distribution was retained in FY 2020 FY 2021 Revenue Contribution by Segment (By proportionate interest) Growth in Distributions from FY 2014 to FY 2021 (S$ million) FY 2015 FY 2014 1 FY 2017 FY 2016 FY 2019 FY 2018 FY 2021 FY 2020 56.1 45.9 70.0 67.4 123.2 71.3 142.0 132.8 CAGR: 16.3% 2 % Office 59.2 Hospitality 26.0 Retail 14.8 30 O U E COMM E R C I A L R E I T