OUE REIT - DBS Research 2025-10-27: Riding The Interest Rate Tailwinds

• OUE REIT (SGX:TS0U) reported 3Q25 revenue and net property income (NPI) at S$70.5mil (-5.8% y-o-y) and S$57.0mil (-5.6% y-o-y) respectively.
• The decline was mainly due to the divestment of Lippo Plaza Shanghai in December 2024. Excluding that, revenue and NPI would have increased by 1.2% and 2.0% y-o-y respectively, in line with our forecasts.

Another quarter of strong office rental reversion and interest savings.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Financing costs decreased 19.7% y-o-y as cost of debt declined to 4.1% in 3Q25 (-70bps y-o-y, -10bps q-o-q).

• The issuance of a seven-year S$150mil green note in October 2025 at a 2.75% coupon, the lowest coupon ever for OUE REIT’s bond issuances, compared with 3.9% for last year’s notes reflects a 115bps compression in financing costs.
• We anticipate further cost savings ahead, supported by refinancing opportunities on its high-cost loans (e.g., S$238mil maturing in FY26) and expiring interest rate swaps.

Gearing could decline to 37.7%

• 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/.

Previous report by DBS:
2025-07-25 OUE REIT - Interest Savings Cushion Hilton’s Drag.

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 Dividend Payout Dates & Corporate Actions,
OUE REIT News