- OUE REIT's dividends for FY25 jumped 8.3% y-o-y to 2.23 Singapore cents, beating our and consensus estimates on lower-than-expected finance costs
A strong beat on lower-than-expected finance costs.
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- Finance costs fell 17.6% y-o-y, as management’s efforts to optimise its balance sheet over the past few years bore fruit, coupled with a declining interest rate environment.
- Consequently, the amount to be distributed rose 8.9% y-o-y to S$123.8m. This translated to a full year DPU of 2.23 Singapore cents, which was 8.3% higher y-o-y and exceeded our forecast by 7.6%. 2H25 OUE REIT's DPU of 1.25 Singapore cents is due to be paid out on 10 Mar 2026.
Resilient office performance amidst flight to quality.
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- Amidst tight vacancies and a continued flight to quality trend, management expects reversions for its office portfolio to remain positive at around the MSD level.
Retail and hospitality performance were shaky but expected to improve in FY26.
- Read more at SGinvestors.io.
