OUE REIT - Phillip Securities 2024-07-28: Sound Operational Performance Dragged By Financing Cost

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Despite the sound operational performance, with NPI inching up by 1.6% y-o-y and forming 48% of our FY24e estimates, OUE REIT's DPU declined 11.4% y-o-y at 46% of our FY24e forecast, landing at S$0.93 cents. This weakness was attributed to the rising financing costs (+18.5% y-o-y), higher retention of earnings for working capital (+67% y-o-y to S$5mil), and the payment of 100% base management fees in cash (65% in 1H23).

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The Positives

Rental reversion to support earnings.

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Liu Miao Miao Phillip Securities Research | Paul Chew Phillip Securities | https://www.stocksbnb.com/ 2024-07-28 SGinvestors.io

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