OUE REIT - DBS Research 2025-01-27: Anchored In Stability

• OUE REIT’s 2H24 DPU of 1.13 cents (+8.7% y-o-y) outperformed our estimates as distribution was boosted by
  1. the removal of working capital retention,
  2. release of S$2.5mil in capital distribution from the 50% divestment of OUE Bayfront, and
  3. - Read this at SGinvestors.io -
• 2H24 revenue grew 1.7% y-o-y to S$148.8mil, though net property income (NPI) declined 2.3% y-o-y to S$116.9mil due to an upward revision of prior years’ property tax for the two Singapore hotels. Excluding the revision, NPI would have increased 0.3% y-o-y.

Gearing inched up slightly

• OUE REIT's gearing inched up slightly q-o-q to 39.9% (vs. 39.3% as of Sep 24), while cost of debt declined 10bps q-o-q to 4.7% (vs. 4.8% as of Sep 24). S$116mil in debt will be due in FY25, accounting for 4.9% of total debt. Portfolio valuation remained relatively stable, as gains from the Singapore office portfolio were offset by minor losses at Mandarin Gallery (-0.6% y-o-y) and Hilton Singapore Orchard (-2.0% y-o-y).
• - Read this at SGinvestors.io -

Office performance expected to remain resilient.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-04-25 OUE REIT - Riding The Interest Rate Tailwind.

Price targets by 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 Dividend Payout Dates & Corporate Actions,
OUE REIT News