| Latest Forum Topics / OUEREIT Last:0.35 -- |
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OUE Comm-REIT is taking off, Hurry !
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Delvyss
Elite |
03-Jun-2026 10:19
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OUE REIT Secures S$75 Million Unsecured Facility with Sponsor Ownership Conditions and Disclosure Under SGX Rule 704(31)https://www.minichart.com.sg/2026/06/02/oue-reit-secures-s75-million-unsecured-facility-with-sponsor-ownership-conditions-and-disclosure-under-sgx-rule-70431/#google_vignette |
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Alignment
Elite |
02-Jun-2026 09:55
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The thing is, given what happened with Sabana voting out the manager, REITs now have to be very careful about not annoying shareholders too much. Obviously there are some REITs you have to avoid because of legacy missteps that still haunt the company, and also sometimes people just make mistakes or are incompetent. But here I think there is a lot of upside for not a lot of risk. |
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HuatAh7898
Elite |
02-Jun-2026 06:10
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Nice play! |
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Alignment
Elite |
01-Jun-2026 20:08
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A volatile share price can be a positive or negative for investors depending on how you play it. While I do not doubt descriptions of negative experiences, my own investment journey in OUE REIT has been very postive. Bought in late 2023 at $0.21-0.24, sold in Sep 2024 at $0.31-33, bought back in April 2025 at $0.25-0.27 and sold out again at $0.35-37 in late 2025. Now back in again at $0.35-0.36 for my third play after the announcement of the 1RP sale plan. Bought back in at the same price I sold in late 2025 because the dynamics are much more attractive now than then. My view changes when the facts change. Let it ride! |
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HuatAh7898
Elite |
01-Jun-2026 09:37
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This counter has been underperforming in terms of capital appreciation+ distribution untill lately when price rise from 28 to 35 At 35 at least some capital appreciation for those holders since 12 years ago Upside potential is the asset sale of One Raffles place Keppel reit on the other hand has better assets quality but lower yield of about 6% at current price Both counters are good to have exposure to looking ahead!! Dydd |
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luckyguy3
Master |
31-May-2026 23:07
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I remember OUE reit during Covid is the worst performing reit, the share price dropped drastically and fast.. dropped to 20 cents.. drop until so low that I did not dare to load... now phobia of this counter.. dun know why |
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Alignment
Elite |
31-May-2026 09:54
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At a price of $0.355 the DPU yield is already 7% which to me seems attractive for a Singapore focused commercial REIT. In comparison the DPU yield of Keppel REIT is 5.8% and 10% of that is unsustainable because it is a special dividend. What is talk at the moment is the sale of 1RP but if it happens it will be a game changer for the share price. Happy at this price to buy an already high yieldiing stock which has the potential for big upside. |
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HVRRVH
Elite |
30-May-2026 14:04
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Han spoken a lot but there is no material substance. What matters to reit is its DPU, while it is good to reduce borrowing costs, realised NAV by selling assets etc but if it doesn?t translate to higher DPU then it?s just paper talk. While the reit and Han touted 3 years transformation, its DPU did not move a needle in the corresponding period. Talk and talk and unit holders who supported it all this while still sit on net loss as the unit price has dropped from high 40s even 50 to current levels. On the other hand, indeed with current price this reit may worth a shot but it has recovered from 21 cents so market in fact is still not too convinced unless going forward we see increase in DPU. |
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Joelton
Supreme |
30-May-2026 13:44
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OUE REIT: The case for prime assets in a volatile world OUE REIT CEO Han Khim Siew spent three years overhauling the REIT he inherited, from capital structure and portfolio to strategy. The transformation of a flagship Orchard Road hotel reflects a broader conviction: in an era of persistent uncertainty, the right assets in the right locations can turn volatility into an advantage. In February 2022, after two years of closure, OUE REIT completed the $150 million asset enhancement of the former Mandarin Orchard Singapore, reopening the property as Hilton Singapore Orchard. The 1,080-room property, now Hilton&rsquo s largest flagship hotel in Asia Pacific, had been redesigned, repositioned and rebranded. The first tower opened to near-full occupancy the second tower followed in January 2023, completing the hotel&rsquo s full room inventory. &ldquo It was a flight to quality,&rdquo adds Han. &ldquo A new, improved, revamped Hilton. We really benefited from that first wave of tourism coming back post-Covid-19.&rdquo The hotel also shifted its focus away from the regional leisure market. The former Mandarin Orchard had largely catered to visitors from Southeast Asia, China, Japan and Korea, who typically arrived in waves during peak holiday seasons. With the rebrand, the hotel pivoted towards corporate guests. The share of American visitors rose from low single digits to the mid-teens. Daily room rates, which had hovered at $270&ndash $280 before refurbishment, climbed to $400&ndash $450, touching $500 in peak periods. The result, Han says, was a fundamentally more stable earnings profile. &ldquo During the travel holiday season, you still get the regional tourists coming through. During the non-holiday season, you have the corporate travellers from the US and from Europe. That balances out quite nicely.&rdquo A new management team installed at the Hilton in September and October 2025 sharpened execution further, responding more quickly to corporate bookings, refreshing food and beverage menus every two months and partnering with the Singapore Tourism Board on events and experiences along Orchard Road. &ldquo We can&rsquo t sit back on our past successes,&rdquo adds Han. &ldquo We have to look forward.&rdquo Rebuilding through three phases The hotel&rsquo s reinvention mirrors what Han has been working through at the REIT level since he joined in February 2022. He describes his tenure in three phases. The first was structural: fixing the capital architecture of a REIT whose debt was mostly on a secured basis, and whose cost of borrowing was higher than he believed it should be. &ldquo We focused inwards,&rdquo he says. &ldquo Improving our capital structure.&rdquo Over three years, the team shifted OUE REIT&rsquo s financing from secured to unsecured, working with S& P Global along the way. By late 2023, OUE REIT had secured a BBB-minus investment grade credit rating, broadening its access to the bond market and institutional capital, while prompting more competitive pricing from banks. According to Han, the REIT&rsquo s current cost of debt sits at approximately 3.7% as of March 31, 2025. A seven-year bond issued in October 2025 printed at 2.75%, and he expects the overall cost of debt to move lower over the next one to two years. The second phase was portfolio discipline. The most significant move was the divestment of Lippo Plaza Shanghai, the only large commercial transaction of its kind to complete in that market during the period. &ldquo We divested at a 5% discount to valuation,&rdquo adds Han. &ldquo And we&rsquo ve seen occupancy fall another 20 to 30 percentage points, and rents come off another 20 to 30%, since we divested.&rdquo The December 2024 divestment released capital and reduced leverage, positioning the REIT to pursue accretive acquisitions. The third phase was about closing the disconnect between the REIT&rsquo s market price and the net asset value (NAV) of its underlying assets. Trading at roughly 0.65 times NAV, the REIT sits at what Han calls an &ldquo irrational&rdquo discount. Yet he is clear-eyed about what it will take to close that gap: not persuasion, but proof. This is where One Raffles Place comes in. The asset, which represents about 25% of portfolio revenue, is now being brought to market. Han argues that a sale at or above book value would demonstrate the discount is unsustainable while releasing capital for redeployment into newer freehold assets with stronger return potential. Separately, at OUE Bayfront, the team is decanting an M& E floor into approximately 22,600 sq ft of prime office space by connecting the building to the district cooling system &mdash a project Han says offers an 11% return on investment. Stability and upside At the portfolio level, Han describes OUE REIT&rsquo s structure as a barbell. On one side sits its commercial office portfolio: OUE Bayfront, OUE Downtown and One Raffles Place in Singapore, anchored by longer leases and 14 consecutive quarters of positive rental reversions (tenants renewing at rates above previous rents) and Salesforce Tower in Sydney. On the other side is hospitality and retail, which together account for roughly half of portfolio revenue. Crowne Plaza Changi Airport, the REIT&rsquo s second hotel, complements the Hilton with a different guest profile: transit passengers on long-haul layovers, airline crew and tourists drawn to Jewel Changi. Aviation-themed rooms, developed with a children&rsquo s brand, now attract guests willing to pay a premium for the experience. Han describes hospitality and retail as &ldquo experiential infrastructure&rdquo &mdash assets positioned to capture a structural shift in consumer spending as incomes rise. Pop-up collaborations at Mandarin Gallery, the retail component beneath the Hilton, and a new live event venue opening nearby all follow the same logic. The asset class&rsquo s structural appeal to the REIT, Han adds, is daily repricing. Office leases can take years to catch up with inflation, while hotel room rates can adjust overnight. He continues: &ldquo If you believe inflation will stay sticky, then what in your portfolio can reprice to align with rising inflation?&rdquo A 10% decline in room rates, he notes, would affect overall REIT income by roughly 3.5% &mdash a manageable downside, in his view, relative to the upside potential from a growing travel market across a regional catchment of around three billion people in China, Southeast Asia and India. OUE REIT&rsquo s February 2026 acquisition of a 19.9% stake in Sydney&rsquo s Salesforce Tower illustrates how the phases connect. The building &mdash one of the newest prime office towers in Sydney&rsquo s CBD, completed in 2022 &mdash was acquired at an implied valuation of approximately A$1.8 billion ($1.6 billion), below the A$2.2 billion at which it had previously traded. Occupancy stood at 99.2% as of March 31. The asset is freehold, limiting near-term capital expenditure, and Sydney&rsquo s prime CBD office supply pipeline is even tighter than Singapore&rsquo s, with the next significant delivery three to five years away. Han also highlights the market&rsquo s structure. Nine of the last ten prime Sydney CBD office transactions were pre-empted by incumbent owners buying out departing partners. That leaves few openings for new entrants, while those already in the asset are natural beneficiaries when opportunities arise. &ldquo Our peers can&rsquo t access it,&rdquo he adds. &ldquo But we&rsquo re there.&rdquo Designed for uncertainty Han returns often to the word volatility. He sees it not as a threat to hedge against, but as a condition to anticipate and position for. That logic runs through much of OUE REIT&rsquo s strategy: the flight to quality that filled Hilton Singapore Orchard in its opening months, the widening divide between prime CBD offices and secondary locations, the intra-Asia travel flows he expects to strengthen as geopolitical uncertainty drives up the cost of long-haul flights and the daily repricing power that lets hotel room rates track inflation in ways office leases cannot. &ldquo Volatility will always come,&rdquo he adds. &ldquo The question is whether your portfolio is positioned to capitalise on it. That is why we focus on prime core assets, because whenever uncertainty rises, there&rsquo s always a flight to quality.&rdquo The thesis is not new. What has changed at OUE REIT over the past three years is the capital structure, portfolio mix and balance sheet needed to act on it. |
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seanpent
Supreme |
29-May-2026 15:16
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Starting to move up. A wake up call? |
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Delvyss
Elite |
15-May-2026 09:06
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Analysts expect OUE Reit to unlock further value from assets after strong Q1 showing https://cassette.sphdigital.com.sg/attachments/businesstimes/1afba6375c5f9973ec021351117f1401bc4fbc6d53ece5c1bb0da5be3ace406b |
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seanpent
Supreme |
14-May-2026 13:21
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Grade A office Reits super oversold. |
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Delvyss
Elite |
13-May-2026 14:12
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Covering Analysts Reiterate Confidence in OUE REIT Following Robust 1Q 2026 Performance https://www.moomoo.com/community/feed/covering-analysts-reiterate-confidence-in-oue-reit-following-robust-1q-116491687034885 |
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Delvyss
Elite |
13-May-2026 08:51
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S-Reits overall could see base forming and u-turning anytime soon. Rate change expectation likely factored in by now. |
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Joelton
Supreme |
27-Apr-2026 11:19
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v |
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Alignment
Elite |
25-Apr-2026 17:39
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A 45 cent share price for OUE REIT implies the same DPU yield as KREIT' s today. Shows how undervalued OUE REIT is relative to KREIT. There is then further upside beyond 45 cents from the potential sale of One Raffles Place. |
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JurongW
Elite |
25-Apr-2026 15:19
Yells: "Earnings give weight, Chart give wings" |
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OCBC - 41, DBS - 45, CGSI - 44. Average of the 3 brokerages: ~43.5 cents At share price of 37 cents, Potential capital appreciation of ~17.5% |
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Joelton
Supreme |
25-Apr-2026 10:10
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OCBC, DBS, CGSI maintain positive views on OUE REIT Analysts continue to like OUE REIT after it reported 1QFY2026 numbers with net property income and revenue up by 8.4% y-o-y and 6.7% respectively, thanks to a strong rebound in its hospitality segment and resilient performance from the commercial portfolio. While OUE REIT has recently expanded into Sydney with the partial acquisition of Salesforce Tower, its portfolio remains anchored here in Singapore with 95% of the $6.1 billion portfolio value. Growth was broad-based with both hospitality and commercial assets recording higher net property income, albeit at different rates. In the quarter, the REIT&rsquo s revenue per available room (RevPAR) surged 11.7% y-o-y to $277, thanks to events such as the biennial Singapore Airshow and maiden voyage of the Disney Cruise. This helped drive NPI for the hospitality segment by 16.8% y-o-y. The commercial segment, on the other hand, saw its NPI up by 3% with office renal reversions up by 6%, even though committed occupancy edged lower. OUE REIT was earlier in the news for acquiring a 19.9% interest in 180 George Street, also known as Salesforce Tower in Sydney for A$357.2 million, or $319.8 million, which is at an initial passing yield of 5.8%. The property&rsquo s committed occupancy, as at March 31, was 99.2%, above the market average of 90.6% for premium grade assets. OUEREIT has a right of first refusal (ROFR) to further increase its stake in 180 George Street, and management appears keen to exercise this should the opportunity arise, says Ada Lim of OCBC Group Research, adding that rental growth for the Sydney Central Business District (CBD) market is expected to remain supported by flight-to-quality trends and limited new supply beyond 2027. On the other side of the capital reallocation coin, OUEREIT is exploring the divestment of One Raffles Place, ahead of potentially muted reversions in 2028-2029 as new supply comes to market. Meanwhile, the REIT expects to lower its financing costs further. Aggregate leverage, as at March 31, was 41.5%, 3 percentage points higher as compared to the end of FY2025 following the drawdown of debt to fund the acquisition of 180 George Street. Cost of debt, however, improved a further 20 basis points over the quarter to 3.7%, with 73.6% of debt on fixed rates and is seen to lower to the mid-3% handle. Assuming a 25bps decline in interest rate, DPU would increase by 0.03 Singapore cents. The REIT&rsquo s management, according to Lim, has not seen a &ldquo noticeable impact&rdquo on its hotels from the Middle East war. &ldquo We are cautious that this may take some time to filter through,&rdquo warns Lim. &ldquo That being said, we expect margins to remain stable, underpinned by long-term utilities contracts,&rdquo says Lim, who has revised her FY2026 and FY2027 DPU projections by 0.4% and 0.7%, respectively, leading to a new fair value of 41 cents, from 40 cents. In her separate note, Tabitha Foo of DBS Group Research is even more bullish on the REIT, with her &ldquo buy&rdquo call and target price of 45 cents. To her, the REIT &ldquo remains one of the key beneficiaries of a declining interest rate environment in Singapore within the mid-cap REIT space, with steady q-o-q interest savings that are likely to continue,&rdquo says Foo. For her, &ldquo meaningful&rdquo catalysts for the REIT would be a focus on capital recycling, including a potential divestment of One Raffles Place, or Crowne Plaza Changi Airport. Valuations, for Foo, are attractive at 0.65x price to book and more than 6.5% FY2026 yield. Li Jialin and Lock Mun Yee of CGS International, meanwhile, have turned more bullish on this counter, as they raised their target price from 41 cents to 44 cents. They note that the REIT will be adding one level of office space at OUE Bayfront by converting the existing chiller system space on Level 17. " We see potential upside from this upon completion in 1HFYFY2027." For them, re-rating catalysts include accretive divestments and timely capital deployment, while downside risks include interest cost hike and disruptions to global travel. OUE REIT units closed at 37 cents on April 24, down 1.35%. |
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Alignment
Elite |
22-Apr-2026 12:14
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Very strong set of results. Every part of the business growing fast, and interest costs also falling. The next DPU should look very good based on this. |
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Joelton
Supreme |
22-Apr-2026 11:13
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OUE REIT&rsquo s NPI rose by 8.4% y-o-y in 1QFY2026 OUE REIT&rsquo s (SGX:TS0U) net property income (NPI) rose by 8.4% y-o-y to $57.6 million in 1QFY2026 ended March 31. Meanwhile, revenue increased by 6.7% y-o-y to $70.5 million in the same period. The higher revenue and NPI were mainly driven by strong y-o-y growth in the hospitality segment, which saw double-digit increase in the quarter, coupled with resilient operating performance from the commercial portfolio. Share of results of joint venture and associate jumped by 57.2% y-o-y, mainly driven by higher contribution from OUE Bayfront arising from significant interest cost savings following its refinancing completed last August and the acquisition of 180 George Street on March 16. The commercial segment, which comprises of both office and retail, achieved higher revenue and NPI of $43.6 million (+2.2% y-o-y) and S$33.3 million (+3.0% y-o-y) respectively. The higher numbers were derived from the higher average passing rents from consecutive quarters of positive rent reversion across the commercial portfolio. As at March 31, OUE REIT&rsquo s Singapore office portfolio committed occupancy stood at 95.2% and recorded a positive rental reversion of 6.0% for office lease renewals, while average passing rent rose by 0.2% q-o-q to $11.00 per square foot (psf) per month. For the hospitality segment, revenue and NPI saw a faster growth rate of 15.1% and 16.8% y-o-y to $26.8 million and $24.3 million respectively, driven by improved MICE pipeline which includes the return of the biennial Singapore Airshow and the maiden voyage of Disney Cruise. OUE REIT&rsquo s hospitality segment&rsquo s revenue per available room (RevPAR) was up by 11.7% y-o-y to $277. Hilton Singapore Orchard&rsquo s RevPAR in 1QFY2026 increased by 11.2% y-o-y to S$277 on higher occupancy rate driven by increased transient demand and stable corporate bookings. Crowne Plaza Changi Airport recorded RevPAR of $276 in 1QFY2026, translating to an 11.7% y-o-y growth. On the capital management front, OUE REIT&rsquo s weighted average cost of debt improved by 20 basis points q-o-q to 3.7% per annum, driven by lower interest rate environment. Weighted average term of debt stood at 3.0 years as at March 31 and aggregate leverage was at 41.5%, following the acquisition of a 19.9% interest in 180 George Street and drawdowns for payment of distributions to Unitholders in 1QFY2026. Interest coverage ratio improved slightly to 2.6 times as at March 31, compared against the figure of 2.4 times as at December 31. &ldquo Looking ahead, our portfolio fundamentals remain resilient, underpinned by the continued attractiveness of Singapore and Sydney as safe haven markets amid heightened global uncertainty. Building on these strengths, we will continue to advance our Phase 3 Value Creation Journey with a focus on disciplined capital allocation, active asset management and long-term value creation for Unitholders,&rdquo says Han Khim Siew, CEO of the manager. |
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