OUE REIT Announces Key Distribution Details for H2 2024
Singapore-based OUE Real Estate Investment Trust (OUE REIT) has released a detailed notice regarding its second-half 2024 distributions, outlining key payment details, tax implications, and important deadlines for all stakeholders. This announcement comes as part of OUE REIT’s effort to ensure transparency and clarity for its investors, particularly its unitholders and convertible perpetual preferred unit (CPPU) holders.
Key Distribution Details
OUE REIT has declared a distribution of 1.13 cents per unit for the period from 1 July 2024 to 31 December 2024. This distribution comprises three components:
- Taxable income distribution: 0.82 cents per unit
- Tax-exempt income distribution: 0.11 cents per unit
- Capital distribution: 0.20 cents per unit
For CPPU holders, OUE REIT has declared a distribution of S\$1,106,010.93 for the same period. The sole CPPU holder, Clifford Development Pte. Ltd. (a subsidiary of OUE Limited), will receive this amount, equivalent to 1.0% per annum of the issue price of S\$1.00 per CPPU.
Important Deadlines and Payment Dates
Unitholders and CPPU holders must take note of the following key dates:
- Ex-distribution date: Monday, 3 February 2025 (9:00 a.m.)
- Books closure date: Tuesday, 4 February 2025 (5:00 p.m.)
- Deadline to submit tax forms: Monday, 17 February 2025 (5:00 p.m.)
- Distribution payment date: Wednesday, 5 March 2025
Unitholders whose securities accounts with The Central Depository (Pte) Limited are credited with units as of the books closure date will qualify for the distribution. CPPU holders whose accounts with Boardroom Corporate & Advisory Services Pte. Ltd. are credited with CPPUs by the same date will also qualify.
Tax Implications for Unitholders and CPPU Holders
OUE REIT has outlined critical tax-related details for investors:
- The tax-exempt income distribution and capital distribution are not subject to Singapore income tax.
- The taxable income distribution is subject to Singapore income tax unless exemptions apply. Certain categories of unitholders, such as tax-resident companies, individuals holding units in their sole names, or foreign non-individuals eligible for a reduced tax rate of 10%, may qualify for a gross or reduced-tax distribution.
To receive gross or reduced-tax distributions, eligible unitholders and CPPU holders must submit the appropriate forms (“Declaration for Singapore Tax Purposes Form A” or “Form B” for depository agents) by 5:00 p.m. on 17 February 2025. Failure to do so will result in tax deductions at the applicable rates.
Investors holding units under the Central Provident Fund Investment Scheme (CPFIS) and Supplementary Retirement Scheme (SRS) will automatically receive gross distributions without needing to return any forms.
Potential Impact on Share Price
This announcement is likely to draw attention from investors due to its impact on returns and potential tax implications. The distribution yield, combined with the clarity on tax treatment, could influence investor sentiment and, subsequently, OUE REIT’s share price. Shareholders should monitor the trading activity closely as the ex-distribution date approaches.
Important Reminder
Unitholders and CPPU holders are urged to complete and return the necessary tax forms by the stipulated deadline to avoid unnecessary tax deductions. Any queries regarding the distributions or submission process can be directed to Mary Ng, Vice President of Investor Relations, at mary.ng@ouereit.com or via phone at +65 6809 8704.
Disclaimer
The information provided in this article is based on OUE REIT’s official announcement dated 23 January 2025. This article does not constitute financial advice or an offer to buy or sell securities. Investors are advised to consult their financial advisors before making any investment decisions. Past performance is not indicative of future results, and all investments carry risks, including the potential loss of principal.
