- OUE REIT's gross revenue for 3Q24 slipped by 1.2% y-o-y to S$74.8mil, in line with our forecast. 9M24 revenue forms 74% of our FY24e estimates. NPI was down by 3.7% y-o-y to S$60.3mil and was within our estimates, forming 73% of our FY24e forecast. The decline was mainly due to both hotels' upward revision of property tax.
- - Read this at SGinvestors.io -
- FY24e earnings are expected to be supported by high single-digit rental reversion in both the retail and office segments. However, we anticipate high interest rate to persist into 1H25, as OUE REIT increased its fixed-rate debt by 9.5ppt to 70.5% in 3Q24.
The Positives
Resilient Singapore rental reversion.
- - Read this at SGinvestors.io -
- We expect pressure on the vacancy rate to alleviate in 2025 in the face of the construction delay of Shaw Tower. With the postponement of the 614k sqft upcoming supply, which is more than 2 times the IOI phase 2 entered into the market this year, we expect rental reversion to maintain at the mid-single digits in FY25e.
Cost of borrowing on the downward trajectory.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Liu Miao Miao Phillip Securities Research | Paul Chew Phillip Securities Research | http://www.poems.com.sg/ 2024-10-25
Previous report by Phillip:
2024-07-28 OUE REIT - Sound Operational Performance Dragged By Financing Cost.
Price targets by 2 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
