OUE REIT Surges Ahead in ESG Leadership: Secures Four-Star GRESB Rating, Upgrades Green Credentials, and Launches \$750M in Green Financing

Singapore, 6 October 2025 – OUE Real Estate Investment Trust (“OUE REIT”), managed by OUE REIT Management Pte. Ltd., has announced a series of ESG achievements and financial moves that could significantly impact investor sentiment and share value. The REIT continues to reinforce its leadership in sustainability and green finance, signaling its commitment to long-term growth and resilience in the real estate sector.

Key Highlights Investors Must Note

• Four-Star GRESB Rating (2025): OUE REIT has been awarded a four-star rating for the second consecutive year in the Global Real Estate Sustainability Benchmark (GRESB) assessment, with an improved score of 85 points, which is 6 points above the global average.
• ESG Performance: The REIT achieved full marks in social performance and scored 18 out of 20 in governance. Its environmental score surged to 49, outperforming the GRESB average of 40.
• Green Certification Milestone: 95.4% of OUE REIT’s portfolio is now green-certified. Notably, office assets OUE Bayfront and OUE Downtown Office have been upgraded to the prestigious BCA Green Mark Platinum certification.
• Net Zero Transition: OUE Bayfront has started its Net Zero transition plan, including the commencement of works to connect to the District Cooling System (DCS)—a major step in energy efficiency and carbon emission reduction.
• Green Financing Initiatives:
  • In August 2025, OUE REIT’s joint venture, OUE Allianz Bayfront LLP, secured its first S\$600 million green loan facility.
  • On 29 September 2025, OUE REIT priced its second seven-year Investment Grade Green Notes of S\$150 million at a competitive fixed coupon rate of 2.75% due 2032.
• Portfolio Overview: OUE REIT manages S\$5.8 billion in assets, including six prime office, hospitality, and retail properties located in Singapore’s financial and business hubs. Its office assets boast a combined Net Lettable Area of 1.6 million sq ft, while its hospitality arm offers 1,655 upper upscale rooms across two hotels—Hilton Singapore Orchard and Crowne Plaza Changi Airport—and a premier retail mall, Mandarin Gallery.
• Sponsor Strength: OUE Limited, the sponsor, is a major regional player with total assets valued at S\$8.9 billion and S\$7.8 billion in funds under management, spanning real estate and healthcare sectors.

Potential Share Price Catalysts & Risks

• Positive ESG Recognition: The repeat four-star GRESB rating and above-average scores in all ESG categories enhance OUE REIT’s attractiveness to institutional and ESG-focused investors, potentially supporting share price appreciation.
• Green Certification & Net Zero Initiatives: Upgrading major assets to BCA Green Mark Platinum and progressing towards Net Zero positions OUE REIT as a leader in sustainable asset management, which is increasingly a factor in investor decision-making and valuation premiums.
• Large-Scale Green Financing: The successful closure of S\$750 million in green financing (S\$600 million loan and S\$150 million notes) not only improves capital structure but also signals strong lender and investor confidence in its sustainability strategy, possibly lowering borrowing costs and enhancing distributable income.
• Portfolio Quality and Strategic Location: With prime assets in Singapore’s CBD, top-tier hotels, and a flagship retail mall, OUE REIT maintains high occupancy and rental rates, supporting stable distributions and long-term growth.
• Governance and Community Stewardship: OUE REIT’s commitment to stakeholder engagement and robust governance, as evidenced by high GRESB scores, reduces operational and reputational risks.

Important Information for Shareholders

• OUE REIT’s financial and ESG achievements may drive enhanced investor demand and liquidity, especially from global funds seeking green-certified assets.
• The new green loan and notes expand financial flexibility and support ongoing asset upgrades and sustainability initiatives, which could underpin higher future distributions.
• Shareholders should monitor ongoing climate transition strategies and future asset enhancements, as further progress may provide additional share price catalysts.
• The REIT cautions that investment risks remain, including economic cycles, interest rate trends, and property market conditions. Past performance is not indicative of future results.

About OUE REIT & OUE Limited

OUE REIT is one of Singapore’s largest diversified REITs, listed since 2014 and managed by a wholly-owned subsidiary of OUE Limited. Its sponsor, OUE Limited (SGX:LJ3), is a prominent real estate and healthcare group with a strategic focus across Asia, managing both OUE REIT and First REIT.

For Further Information

Contact: Mary Ng, OUE REIT Management Pte. Ltd.
Tel: +65 6809 8704
Email: [email protected]
Website: www.ouereit.com

Disclaimer

The information provided in this article is for informational purposes only and does not constitute investment advice or a recommendation. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. The value of units in OUE REIT and the income derived from them may rise or fall, and past performance is not necessarily indicative of future performance. This article may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed or implied.

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