- For 1H24, OUE REIT (SGX:TS0U) delivered revenue of S$146.7mil, representing a 5.7% y-o-y increase from S$138.8mil in 1H23. Net property income rose by 1.6% y-o-y to S$117.1mil, up from S$115.3mil in the previous year. These gains were primarily driven by the recovery of Singapore's tourism sector, benefiting the hospitality segment.
- - Read this at SGinvestors.io -
Well-positioned to capture the rebound in visitor arrivals
- Singapore’s tourism sector showed encouraging signs with visitor arrivals from January to June 2024 reaching 8.2mil, a 31.1% y-o-y increase. This trend supported strong leasing activity and an increase in prime Orchard Road retail rents. However, labour shortages and cost challenges may continue to impact the pace of recovery.
- - Read this at SGinvestors.io -
Exposure to Shanghai market remains a concern
- With 92.5% of assets under management in Singapore and 92.1% of its portfolio revenue coming from Singapore assets, OUE REIT's exposure to the challenging Shanghai market remains a concern.
- Nonetheless, management has been defending its occupancy rates, with office committed occupancy rising slightly to 76.2% and retail committed occupancy remaining stable.
- Approximately 50.8% of the portfolio is composed of hospitality and retail segments, which are expected to benefit from the rise in tourism in Singapore, potentially outpacing growth in the office segment.
1H24 DPU of S$0.0093
- Read more at SGinvestors.io.
Alyssa Tee KGI Securities Research | https://www.kgieworld.sg/ 2024-08-21
Previous report by KGI:
2024-05-31 OUE REIT - Resilience Amidst Challenging Market Conditions.
Price targets by 3 other brokers at OUE REIT Target Prices.
Listing of research reports at OUE REIT Analyst Reports.
Relevant links:
OUE REIT Share Price History,
OUE REIT Announcements,
OUE REIT Dividends & Corporate Actions,
OUE REIT News Articles
