OUEREIT    Last:0.355    +0.005

OUE Comm-REIT is taking off, Hurry !

OUE REIT: The case for prime assets in a volatile world

https://www.theedgesingapore.com/news/kopi-c-company-brew/oue-reit-case-prime-assets-volatile-world

 

https://www.businesstimes.com.sg/opinion-features/reits-dont-trade-well-should-be-privatised-or-sell-assets-and-be-liquidated?utm_campaign=fb& utm_medium=social-organic& utm_source=facebook

seanpent      ( Date: 05-Jun-2026 11:08) Posted: So undervalued.  Should consider taking it private at double current price. :)

 

So undervalued.  Should consider taking it private at double current price. :)

 

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

 

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.

 

Nice play!

 

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!

 

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 

 

 

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

 

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.

 

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.

 

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.

 

Starting to move up.

A wake up call?

 

Analysts expect OUE Reit to unlock further value from assets after strong Q1 showing

https://cassette.sphdigital.com.sg/attachments/businesstimes/1afba6375c5f9973ec021351117f1401bc4fbc6d53ece5c1bb0da5be3ace406b

 

Grade A office Reits super oversold.

 

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

 

S-Reits overall could see base forming and u-turning anytime soon.   

Rate change expectation likely factored in by now.

 

v

 

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. 

 

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%