OUE REIT Announces 1.13 Cents Distribution and Critical Tax Details for 2025

OUE Real Estate Investment Trust (OUE REIT) has declared a distribution of 1.13 cents per unit for the second half of 2024. This announcement includes crucial details about tax implications, deadlines, and payment dates that investors need to be aware of. Here’s what you need to know:

Key Highlights of the Distribution

• Distribution Breakdown: The 1.13 cents per unit distribution comprises:
  • 0.82 cents: Taxable income distribution
  • 0.11 cents: Tax-exempt income distribution
  • 0.20 cents: Capital distribution
• CPPU Distribution: Convertible perpetual preferred unit (CPPU) holders will receive a total of S\$1,106,010.93 for the same period, equivalent to 1.0% per annum of the issue price of S\$1.00 per CPPU.
• Books Closure Date: The transfer books and register of unitholders will close at 5:00 p.m. on Tuesday, February 4, 2025.
• Payment Date: Distributions will be paid on Wednesday, March 5, 2025, to eligible unitholders and CPPU holders.

Important Tax Implications

The distribution includes components that are either taxable, tax-exempt, or treated as a return of capital. Investors should take note of the following:

• Tax-Exempt Income: This portion is exempt from tax for all unitholders and CPPU holders.
• Capital Distribution: Treated as a return of capital, this portion is not subject to Singapore income tax but may adjust the cost base of units/CPPUs for tax purposes.
• Taxable Income Distribution: Tax may be deducted unless specific exemptions apply. Unitholders falling into certain categories, such as Singapore-incorporated companies, Singapore branches of foreign companies, or individuals holding units in their own names, are eligible for gross distributions with no tax deducted.
• Foreign Non-Individual Investors: A reduced tax rate of 10% applies, provided the required documentation is submitted.

Deadlines and Documentation

Investors must adhere to the following deadlines:

• Form Submission: To receive gross or reduced-tax distributions, eligible investors must complete the “Declaration for Singapore Tax Purposes Form A” (for unitholders/CPPU holders) or “Form B” (for depository agents). These forms will be distributed on or around February 6, 2025, and must be submitted to the Unit Registrar by 5:00 p.m. on Monday, February 17, 2025.
• CPFIS and SRS Investors: Investors holding units via the Central Provident Fund Investment Scheme (CPFIS) and Supplementary Retirement Scheme (SRS) do not need to submit the forms and will automatically receive gross distributions.

Market Sensitivity

The announcement could influence OUE REIT’s share price as it provides clarity on distribution yields and tax implications, factors that are closely watched by income-focused investors. The breakdown of taxable and non-taxable components may affect the net returns for different investor categories, potentially shaping sentiment in the market.

Important Dates for Investors

Contact for Queries

Unitholders and CPPU holders with questions can reach out to:

Mary Ng
Vice President, Investor Relations
Tel: +65 6809 8704
Email: [email protected]

Disclaimer

The value of investments in OUE REIT units and CPPUs may fluctuate. Past performance is not indicative of future results. This article should not be considered as financial advice. Investors are encouraged to consult their financial advisors before making any investment decisions.