- OUE REIT (SGX:TS0U)'s gross revenue for FY24 grew by 3.7% y-o-y to S$295.5mil, in line with our forecast and achieving 99% of full-year estimates. Improvement driven by hospitality segment, where revenue surged by 8.9% y-o-y, while commercial premises delivered a stable performance, with revenue increasing by 1% y-o-y.
- - Read this at SGinvestors.io -
- OUE REIT's DPU for FY24 slipped by 1.4% y-o-y to 2.06 cents, outperforming our forecast by 12%, due to
- reduced capital retention (S$5mil in FY24 vs S$8mil in FY23) and
- an additional S$5mil capital top-up from the 50% divestment of OUE Bayfront.
- - Read this at SGinvestors.io -
- OUE REIT's share price is currently trading at an FY25e dividend yield of 6.3% and offers an attractive valuation at 0.52x P/NAV. A well-absorbed office supply, healthy occupier expansionary demand, and continued recovery in travel are expected to support FY25e DPU.
The Positives
Robust rental reversion sustained.
- Read more at SGinvestors.io.
