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Hopeful it wake up and continue to rise, not just wake up to go toilet , then go back to sleep. Lol
Smallinvestor ( Date: 01-Nov-2023 15:21) Posted:
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Finally, oue c reit wake up.
Last Q NPI increased but DPU dorpped, citing higher interest/financial cost. Not too optimistic with this but prepared to hold for at least 24 months so let' s see how much is the upcoming dividend.
HVRRVH ( Date: 19-Sep-2023 09:41) Posted:
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OUE C-Reit net property income up 29.8% in Q3
MAINBOARD-LISTED OUE Commercial Real Estate Investment Trust : TS0U -2.17% (Reit) on Monday (Oct 30) reported a 29.8 per cent increase in its net property income (NPI) to S$62.7 million for the third quarter ended Sep 30, from S$48.3 million in the year-ago period.
Revenue rose 27.5 per cent year-on-year to S$75.8 million, from S$59.5 million.
The growth was driven by overall improvements in the Reit&rsquo s portfolio, especially in the hospitality sector as Singapore&rsquo s tourism industry recovers post-pandemic, the manager said in a business update.
In the hospitality segment, NPI rose 73.2 per cent year-on-year to S$27 million. Revenue grew 67.6 per cent year-on-year to S$28.3 million.
Revenue per available room was up 12.8 per cent year-on-year to S$295.
The manager attributed part of the better performance to the five-star Hilton Singapore Orchard hotel, which was operating a total inventory of 1,080 rooms in Q3, from 634 rooms a year ago.
It added that asset enhancement is ongoing for the four-star Crowne Plaza Changi Airport hotel. This includes the addition of 12 guest rooms, an &ldquo extensive&rdquo revamp of its dining restaurant, and the creation of new meeting facilities.
The works are expected to be completed by December 2023 to &ldquo capture the rebound in both business travellers and tourist arrivals&rdquo in the following year, said the manager. &ldquo (This) is expected to be DPU-accretive (distribution per unit) with an estimated capital expenditure of approximately S$14 million and an expected stabilised return on investment of approximately 10 per cent.&rdquo
Meanwhile, the Reit&rsquo s commercial segment, which includes both office and retail sectors, posted a 9.1 per cent year-on-year increase in NPI to S$35.6 million in Q3. Revenue climbed 11.6 per cent year-on-year to S$47.5 million.
This was mainly due to better performance in its Singapore portfolio, said the Reit&rsquo s manager.
Committed occupancy of the city-state&rsquo s office properties remained &ldquo healthy&rdquo at 95.7 per cent. Average passing rent inched up 1.3 per cent quarter-on-quarter to S$10.35 per square foot in Q3 per cent due to positive rental reversions from past consecutive quarters.
The Reit also recorded a high rental reversion of 31.1 per cent in its retail properties on the back of recovery in tourist arrivals and improving retail sales, it said.
As at end-September, aggregate leverage remained stable at 39.4 per cent, with the weighted average cost of debt at 4.2 per cent per annum, said the manager. It added that the Reit has no refinancing needs until 2025, with the weighted average term of debt at 2.7 years.
Han Khim Siew, chief executive officer of the manager, noted that finance costs will continue to present headwinds due to elevated borrowing costs. &ldquo (But) we remain cautiously optimistic that the impact on distribution will be mitigated by the portfolio&rsquo s healthy revenue and NPI growth, coupled with our prudent capital management approach.&rdquo
OUE C-REIT reports net property income of $62.7 mil in 3QFY2023, 28.9% higher y-o-y
Don't sell to the shortseller. Seems like they are covering their position.
As a reits and value investor, I am salivating! Some funds are taking turn to dump their reits, equities and whatever else. First OUE Commercial, then Lendlease, then blue chip reits like MPACT, Capitaland Integrated, and today they are trying Mapletree Logistic! I am looking at Yield on Cost almost better than any given fixed income products! What we need to do is just add as and when we can and our average YOC will be amazing. Yes, it is a challenge that reits will face higher interest cost and thus, a lower DPU is a given. However, lower doesnt mean don' t have. With YOC inching up to 7,8 or even 10% after adding more at current depressed price, these assets can continue to be held long term and the returns will be out sized when their unit prices claw back to their normal valuation.
This guy got nothing to write, but if he don't write then he got no work liao. End Oct reporting, if the earning is good, price sure up.
What they should do is sell the hospitality assets at a high price whilst concurrently buying back shares at the current signficant discount to NAV.
Hospitality is quite cyclical though - not sure if that really should be the angle and given that the sector is doing well, it would be questionable if they can acquire at the right valuations. We wouldnt want to see them do anything dilutive.
Joelton ( Date: 05-Oct-2023 10:28) Posted:
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OUE Commercial Reit should consider turning hospitality-centric for better valuation
SINGAPORE&rsquo S hotel owners are raking it in amid the tourism sector&rsquo s strong recovery post the Covid-19 pandemic. International visitor arrivals and hotel revenue increased sharply in 2023 from a year ago.
Industrywide, revenue per available room (RevPAR) among Singapore hotels rose 41 per cent year on year (yoy) for the first eight months.
Year-end festivities will likely bring even more cheer to hotel owners. With higher revenue, hotel owners can mitigate rising expenses due to inflation.
In the first half of the year, RevPAR at Hilton Singapore Orchard, which has 1,080 guest rooms, was S$246, up 17 per cent from a year ago.
Crowne Plaza Changi Airport, which has 563 guest rooms, saw RevPAR rise 54 per cent yoy to S$207 in H1. RevPAR for both hotels in H1 was higher than pre-Covid in 2019.
Even as these two hotels are buzzing, however, the unit price of their owner OUE Commercial Real Estate Investment Trust : TS0U -2.13% (OUE C-Reit) languishes.
As at Oct 4, OUE C-Reit traded at S$0.23 &ndash or a 61 per cent discount to its end-June net asset value (NAV) of S$0.59.
Addressing undervaluation
Possibly, OUE C-Reit&rsquo s sponsor OUE : LJ3 -0.95% can distribute units it holds in the trust to its shareholders. With better free float and trading liquidity, OUE C-Reit might trade better.
Based on the latest available annual report, OUE&rsquo s total interest in OUE C-Reit is 48.4 per cent.
If OUE distributes to its shareholders one OUE C-Reit unit for every one OUE share held, OUE shareholders will get a distribution worth around 22 per cent of OUE&rsquo s share price &ndash based on share prices as at Oct 4. Such an exercise would see OUE distribute over 15 per cent of OUE C-Reit.
OUE shareholders should be happy receiving OUE C-Reit units, as the latter&rsquo s distribution yield tops the former&rsquo s dividend yield.
Another option, given OUE C-Reit&rsquo s steeply discounted price, would be privatising the trust at an offer price of around book value. This would better help unitholders realise value.
Yet, OUE trades poorly &ndash its share price as at Oct 4 was a 76 per cent discount to its end-June NAV of S$4.33. Thus, OUE is hardly well-placed to privatise OUE C-Reit.
Better valuations
Perhaps, OUE C-Reit&rsquo s manager can aim for better unit pricing by becoming hospitality-centric. Hospitality trusts with smaller portfolios have been able to garner better valuations.
CDL Hospitality Trusts : J85 -0.97%, Far East Hospitality Trust : Q5T -1.64% and Frasers Hospitality Trust : ACV -0.99% were trading at discounts of 28 per cent, 34 per cent, and 22 per cent, respectively, to their end-June NAVs as at Oct 4.
Should OUE C-Reit trade closer to the book value multiples of the above hospitality trusts, say, at a discount to NAV of 40 per cent, the uplift in unit price will be over S$0.12 per unit.
OUE C-Reit owns a diversified Singapore-centric property portfolio. In Singapore, besides the two hotels, it owns three predominantly office assets in the Central Business District (CBD): OUE Bayfront, One Raffles Place and OUE Downtown Office. It also owns the Mandarin Gallery mall along Orchard Road and commercial building Lippo Plaza in Shanghai, China.
Based on its half-year results&rsquo presentation, the two hotels accounted for about 29.3 per cent of OUE C-Reit&rsquo s property portfolio by asset value.
OUE C-Reit&rsquo s manager could, perhaps, raise the hospitality component to 60 per cent or more of the trust&rsquo s portfolio value in order to get investors to value the trust largely for its hospitality exposure.
Among various property segments, structural drivers for hospitality assets, warehouses and data centres appear to be strong.
Hotels here benefit from growing regional prosperity. The hosting of major events here, such as concerts, conventions and sporting events, drives spikes in room rates. Singapore&rsquo s safety and connectivity, coupled with investments to upgrade her offering to visitors, further support the hospitality segment.
OUE C-Reit can become hospitality-centric by selling some non-hospitality assets. Some of the proceeds raised could then be used to fund purchases of hospitality assets. Still, the trust may struggle to buy hotels in Singapore. These assets are often tightly held and deals would likely be struck at thin yields.
OUE C-Reit could also try enticing listed hotel-owning property-related groups to inject their hotels into it in exchange for units in the trust. Some possibilities include Sofitel Singapore City Centre in Tanjong Pagar or Sheraton Towers Singapore in Newton &ndash owned by GuocoLand : F17 0% and Bonvests Holdings : B28 0%, respectively.
Listed property-related groups that trade at huge discounts to NAV may find OUE C-Reit is a more efficient vehicle through which to own their hotel assets. If required, OUE can give parties who inject hotels into OUE C-Reit ownership interest in the trust&rsquo s manager.
Alternatively, OUE C-Reit could explore merging with a hospitality trust. A merger may see OUE C-Reit&rsquo s unitholders swap units in an undervalued vehicle for securities in another entity that trades better.
While OUE could lose some of its fee revenue from managing OUE C-Reit, it ought to be more than amply compensated by the rise in value of its ownership interest in the trust.
Prospects for OUE C-Reit&rsquo s assets appear fine. The trust&rsquo s Singapore hotels and Mandarin Gallery will benefit from continued growth in visitor arrivals.
Ongoing asset enhancement work at Crowne Plaza Changi Airport can boost its competitiveness. The trust&rsquo s Singapore CBD office buildings also enjoy support from office occupiers looking for quality properties.
Nevertheless, OUE C-Reit&rsquo s severe undervaluation needs correcting.
OUE C-Reit was listed in 2014, with a focus on commercial property. A merger with OUE Hospitality Trust in 2019 saw OUE C-Reit gain hospitality exposure.
Perhaps, OUE C-Reit&rsquo s next chapter should see it enhance value for investors by turning hospitality-centric.
Yeah! Slowly slowly recover ok. In the money liao
The ceo wont know and cannot control the share price. Share prices is determined by buyer and seller. Low share prices doesn't affect shareholders (including major shareholder) if they don't sell. e.g OUE 49% (Riady family) or Gordon tang family 25%. They still getting dividends. It will actually benefit the rich, of they decided to buy more. (But cant increase much of their holdings also). As share prices is determined by the "minority" trade (recent total selling down is probably less than 2 percent of the total shareholdings). Other than the 10percent return on the AEI, it will increase the valuation of crown plaza as in the per key value will increase.
RickyCheng ( Date: 19-Sep-2023 14:54) Posted:
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he says in an interview with The Edge Singapore.
With the main goal of creating long-term value for unitholders and stakeholders, the CEO expects the newly announced AEI at CPCA to be distribution per unit (DPU) accretive for OUE C-REIT. With the estimated capital expenditure of up to approximately $14 million for OUE C-REIT, the AEI is expected to generate a stabilised return on investment of approximately 10%.
https://www.theedgesingapore.com/capital/reits-report-2023/oue-c-reits-prime-singapore-portfolio-delivers-sustained-growth
Rosy pictures. Din ask him the reason(s) of recent dip in prices?
With the main goal of creating long-term value for unitholders and stakeholders, the CEO expects the newly announced AEI at CPCA to be distribution per unit (DPU) accretive for OUE C-REIT. With the estimated capital expenditure of up to approximately $14 million for OUE C-REIT, the AEI is expected to generate a stabilised return on investment of approximately 10%.
https://www.theedgesingapore.com/capital/reits-report-2023/oue-c-reits-prime-singapore-portfolio-delivers-sustained-growth
Rosy pictures. Din ask him the reason(s) of recent dip in prices?
Good price u got, dividend is not bad if paying the same %. Fd, ssb and t bill will not have such yield.
HVRRVH ( Date: 19-Sep-2023 09:41) Posted:
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70000 shares now with average cost of $0.2175. In a ' fightable' position factoring in future dividends and hopefully, recovery of share price in itself.
HVRRVH ( Date: 15-Sep-2023 15:15) Posted:
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First, I must acknowledge the contributions of n3wbie & HVRRVH, the contents of both help inform me further about this Reit. For I' m waiting to zoom in more if it falls
a few cts more below my average, small player though. I will only offer the same that I' ve argued before in this column. At 20.5c, it is trading at 65% discount to its nav of 59ct. You go & check what the assets are, yourselves. Or, why not sell your HDB flat to me at 65% discount ! , not to talk about these prime assets in Sg. I' m unwilling to disclose this information at this juncture for I' m just holding 8k at 21+ cts. Perhaps, you can see this as compensation for my withholding of information when I was trading Oue & arguing with n3wbie etc. wyeo.
a few cts more below my average, small player though. I will only offer the same that I' ve argued before in this column. At 20.5c, it is trading at 65% discount to its nav of 59ct. You go & check what the assets are, yourselves. Or, why not sell your HDB flat to me at 65% discount ! , not to talk about these prime assets in Sg. I' m unwilling to disclose this information at this juncture for I' m just holding 8k at 21+ cts. Perhaps, you can see this as compensation for my withholding of information when I was trading Oue & arguing with n3wbie etc. wyeo.
Today total shares transactedare 19,497,700 shares.
At 17:04:05 today, 1,406,400 shares bought from seller at 20.5 cents.
This is much lesser than last Friday when at 17:04:40 timing, 21,407,500 of shares were bought at 21 cents from the seller
It will be 5pm soon, observe the number of shares transacted and price after 5.00pm ,
Also to take note whether it is BID or ASK. for the price and volume.