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| OUE HTrust |
hit-0.885 cents today |
|
0.880 |
0.885 |
+0.010 |
+1.1 |
volume-1,903,000 |
Edging up slowly. Will hit 0.88 before next dividend payout
Free float market cap increased by 21% on 31 March after the 151.7m units dividend-in-specie. StanChart expects liquidity to improve from the current ~$0.68m/day, which could attract more investors. StanChart also thinks OUEHT could look to acquire Crowne Plaza Changi Airport, last valued at $291m, from OUE in the next 6-12 months. Given OUEHT&rdquo s current gearing of 32%, a fully debt-funded acquisition that ould raise leverage to ~41%. Depending on the funding structure, the house estimates a potential acquisition at 4.5% NPI yiled could be up to 4% accretive to distributions. OUEHT had also announced the establishment of a USD 1b MTN program. StanChart flags OUEHT has having the highest 2014e DPU yield, compared to 7.3% for hospitality SREITs. StanChart has an O/PF on OUEHT with TP of $0.95.
A more stable hospitality play: CIMB
OUEHT SP /OUER.SI| ADD - N/A | S$0.84 - TP:S$0.96 ...
Mkt.Cap: US$864.40m | Avg.Daily Vol: US$0.45m | Free Float: 54.50%
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▊ 70% a hotel and 30% a retail mall, OUEHT is situated at the heart of Orchard Road and offers exposure to both Singapore tourism and retail. With c.70% of its FY14 revenue fixed from retail rent and fixed rent from a hotel master lease, OUEHT is, in our view, a more stable hospitality play than its peers.
We expect organic growth to stem from potential uplift in room rates through the Sponsor-funded AEI on MOS and embedded retail rental step-up.
We initiate on OUEHT with an Add rating and a target price of S$0.96, based on DDM at a discount rate of 7.9%. Potential catalysts include surprises in tourist arrivals and stabilisation of the Rupiah.
What surprised usOUEHT reported DPU of 1.67 cents for 4Q13 and 2.90 cents for the 160 days from its listing date (25 July) to end-2013, above expectations (6% above GSe) on stronger than expected RevPAR and F& B revenue.
Highlights: (1) Mandarin Orchard (MOS) RevPAR of S$249 in 4Q, -4.6% qoq, against a weak Hotel backdrop.
(2) Wholesale segment was 24% of room revenue in 2H (i.e. 25 Jul-31 Dec) vs. 21% in 3Q (i.e. 25 Jul-30 Sep) and 28% in 2012.
(3) Mandarin Gallery (MG) gross rents of S$23.69psfpm in 2H vs. S$21.50psfpm in 2012 retail sales +3% yoy in 2013 with occupancy cost ratio of 20%.
(4) AEI updates: Addition of 12 new rooms and refurbishment of 32 rooms completed in 4Q 30-50 rooms will be closed at any one time for the refurbishment of a further 398 rooms in 2014/2015.
(5) Gearing at 32% 2.2% cost of debt, 100% fixed.
Technical Analysis |
| Daily Chart |
What to do with the stock
OUEHT continues to deliver on yield management initiatives amid a softer hotel market. MOS RevPAR of S$249 in 4Q was above the broader Upscale market segment?s S$231 though the sequential decline of 4.6% qoq was marginally faster than market segment?s 3.5% decline, partially due to its large Indonesian clientele base (35% of room nights), in our view.
We see the refurbishment of rooms helping to maintain the hotel?s positioning, with refurbished room rates 15% higher than the non-refurbished rooms so far. Management highlighted that retail rents are now in line with market rents and further rental growth will be modest and inflation-led.
Maintain Neutral and 12-month DCF-based TP of S$0.92. Introduce 2016 DPU of 6.7 cents. OUEHT trades at 7.2% FY14 div yield, same as FEHT.
Risks
Stronger rupiah (upside), weaker tourist arrivals (downside).
(Read Report)
What surprised us
OUEHT reported DPU of 1.67 cents for 4Q13 and 2.90 cents for the 160 days from its listing date (25 July) to end-2013, above expectations (6% above GSe) on stronger than expected RevPAR and F& B revenue.
Read more »
OUE Hospitality Trust achieves higher Distributable Income and Distribution per Stapled Security than forecast .
http://infopub.sgx.com/FileOpen/OUEHT_3Q_2013_Press_Release_FINAL_for_SGX.ashx?App=Announcement& FileID=262772
Rosesyrup ( Date: 12-Aug-2013 16:23) Posted:
Keep all the negative posting to your self if its not news. Not Interested AH
Sound familiar |
|
OUE:
TP : 3.57
CP: 2.42
PE 2013 F : 2.4
yield : 4.5
Our Top Large Market Capitalisation Stock Picks (UOBKH)
Target Price / price @ 30.10.13 / Monthly Performance / PE2012 / PE 2013F / Yield
Bumitama BUY 1.23/ 0.99/ 0.5/ 16.6 /19 0
FirstRes BUY 2.4 /1.95 2.1 /10.2 /13.9/ 2.1
Ho Bee Land BUY 2.45/ 2.06
N O L BUY 1.3 /1.06
OUE BUY 3.57/ 2.42
Raffles Medical BUY 3.78/ 3.19/ 1.3/ 30.3 /27.3 /1.3
DBS BUY 21.5/ 16.74 /1.9 /10.7 /11.4 /3.3(1.4) /7.7 /13.1 /2.4(3.2)/ n.a. /8.9/ 0(5.5)/ 24.5/ 2.4 /4.5
Keep all the negative posting to your self if its not news. Not Interested AH
Sound familiar?
Hawkeye ( Date: 06-Aug-2013 14:48) Posted:
Few days after IPO already sleeping. 
When is OUE HT buying over Crown Plaza Changi Airport and 2 other Chinese Hotel? |
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Few days after IPO already sleeping.
When is OUE HT buying over Crown Plaza Changi Airport and 2 other Chinese Hotel?
yield of 7% is much better than bank int. given time it will be at least $1.00.
great synergistic arrangement for all, at least at 7% return for the shorterm punters, another 5% div yield in half a yrs time.
SPH has capitalised via SPH Reit:
* One time assets revalued @ Fair/market Value - still retains majority ownership/control of paragon/CMall
* Annual mgt fee on sph reit - with margin markup.
So expect SPH asset ratios to go up so as share price in no time!
Analysts would be watching on " the use of fund/cash proceeds" .
New123 ( Date: 25-Jul-2013 14:25) Posted:
more than 7% yield is quite gd! What is the NAV? think can consider to buy at 88 cents..
starlene ( Date: 25-Jul-2013 14:23) Posted:
| Those who get 1-5lots and at 88.5cts still can't cover Brokerage...I save $$$ to pump more for Auric Pacific |
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If put to lelong, i think Mandarin Hotel and Gallery, real estate and business is worth much more than 1.5billion.
Plaza Changi hotel + 3 other hotel in China once acquired will add another 5% yield at least total yield is 13% of 88cts.
or prize go to Sgd1.60 at 7% yield. :))) Hoping mad.
New123 ( Date: 25-Jul-2013 14:25) Posted:
more than 7% yield is quite gd! What is the NAV? think can consider to buy at 88 cents..
starlene ( Date: 25-Jul-2013 14:23) Posted:
| Those who get 1-5lots and at 88.5cts still can't cover Brokerage...I save $$$ to pump more for Auric Pacific |
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Start low, at least not below water, that what other players thot so when it offeres it ipo > dayend higher, oni 2nd day
Current trading at $0.895 cents with 17,234 mil shr changed hands, slowly acummulating by players?.
Got vested w/o paying commission. Oni paid $2/-.
New123 ( Date: 25-Jul-2013 14:25) Posted:
more than 7% yield is quite gd! What is the NAV? think can consider to buy at 88 cents..
starlene ( Date: 25-Jul-2013 14:23) Posted:
| Those who get 1-5lots and at 88.5cts still can't cover Brokerage...I save $$$ to pump more for Auric Pacific |
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OUE lousy counter !!!
Wooooo Hooooo!!!!!!
more than 7% yield is quite gd! What is the NAV? think can consider to buy at 88 cents..
starlene ( Date: 25-Jul-2013 14:23) Posted:
| Those who get 1-5lots and at 88.5cts still can't cover Brokerage...I save $$$ to pump more for Auric Pacific |
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not a big deal. market up and down quite often.
