OUE HTrust   

OUE Hospitality Trust IPO Listing

KEEP or SELL?

lukewong82      ( Date: 24-May-2019 15:37) Posted: They dun want OUE H share price to rise or drop too much.. i think they want the share price to trade at 67-69 cents.. This is to " motivate" OUE H share holders to vote for the merger with OUE C   just like how Viva trust was kept at 87-89 to " motivate" Viva shareholders to vote for the merger with ESR Reits.

 

They dun want OUE H share price to rise or drop too much.. i think they want the share price to trade at 67-69 cents.. This is to " motivate" OUE H share holders to vote for the merger with OUE C   just like how Viva trust was kept at 87-89 to " motivate" Viva shareholders to vote for the merger with ESR Reits.

 

Explanation: Assume OUE C to be stable at 49 cents.
==> 1 OUE H share = 4 cents + 1.358xOUE C shares = 4 cents + 1.358 x 49 cents  = 70.5 cents.  (after merger)

Case 1)  If 1 OUE H share  is around  69 cents and u pay 69 cents for 1 OUE H share,
==> U will vote for  merger because 70.5 cents is more than the 69 cents that u paid.

Case 2) If 1 OUE H share is around 75 cents and u pay 75 cents for 1 OUE H share,
==> U will not vote for the merger because the 70.5 cents is less than the 75 cents u paid.

Case 3) If 1 OUE H share is around 65 cents and u pay 65 cents for 1 OUE H share,
==> U will 200% vote for the merger and happy until jump over the moon because 70.5 cents is much much  more than the 65 cents u paid
BUT OUE C share holders will not be happy and they will not vote for the merger because they will feel like merging with OUE H shares that
is so cheap is like sacrificing their OUE C shares to " help" OUE H shareholders.

So sweet spot would be OUE C at 49-50 cents while OUE H at 68-69 cents for the coming days until merger is approved.

 

lukewong82      ( Date: 23-May-2019 19:53) Posted: Basically the theory goes like this. They trying to keep OUE C reits share price at around 49-50 cents while keeping OUE H share price at 68-69 cents. Why? At the current share price of 49 cents for OUE C, share price of 68-69 cents means OUE H share holders are more likely to vote for the merger because after getting the $0.04 and 1.358 shares of OUE C reits shares, they are getting some premium. This will give motivation for OUE H share holders to vote for the merger. If OUE H share price is too high , say 75 cents, then OUE H shareholders will feel that they are at an disadvantage because after getting the $0.04 + 1.358 shares of OUE C, the total $$$ is lesser than the share price of 75 cents, so this will deter the OUE H shareholders from voting for the merger. If OUE H share price is too low, say 65 cents, then OUE C reits holders will not approve the merger because they feel that  merging with  OUE H when  OUE H  share price is so low, is not worth to merge. So the sweet spot will be 68-69 cents for OUE H. This will give abit of premium for OUE H share holders once their shares are converted to OUE C and this share price is high enough to convince the OUE C shareholders to accept the merger. So there is no way they will allow OUE H share price to rocket to say 75 cents, and there is also no way they will allow OUE H share price to rocket to tank to 65 cents IF OUE C share price remains steady at 49-50 cents. This happens to Viva trust when it was merging with ESR Reits. The share price was " kept" at 87-89 cents for Viva, a sweet spot.   TANPK123      ( Date: 23-May-2019 18:13) Posted: hi why keep dropping ?

 

Basically the theory goes like this.

They trying to keep OUE C reits share price at around 49-50 cents while keeping OUE H share price at 68-69 cents. Why?

At the current share price of 49 cents for OUE C, share price of 68-69 cents means OUE H share holders are more likely to vote for the merger because after getting the $0.04 and 1.358 shares of OUE C reits shares, they are getting some premium. This will give motivation for OUE H share holders to vote for the merger.

If OUE H share price is too high , say 75 cents, then OUE H shareholders will feel that they are at an disadvantage because after getting the $0.04 + 1.358 shares of OUE C, the total $$$ is lesser than the share price of 75 cents, so this will deter the OUE H shareholders from voting for the merger.

If OUE H share price is too low, say 65 cents, then OUE C reits holders will not approve the merger because they feel that  merging with  OUE H when  OUE H  share price is so low, is not worth to merge.

So the sweet spot will be 68-69 cents for OUE H. This will give abit of premium for OUE H share holders once their shares are converted to OUE C and this share price is high enough to convince the OUE C shareholders to accept the merger.

So there is no way they will allow OUE H share price to rocket to say 75 cents, and there is also no way they will allow OUE H share price to rocket to tank to 65 cents IF OUE C share price remains steady at 49-50 cents.

This happens to Viva trust when it was merging with ESR Reits. The share price was " kept" at 87-89 cents for Viva, a sweet spot.

 

TANPK123      ( Date: 23-May-2019 18:13) Posted: hi why keep dropping ?

 

I think u can refer to the ESR-Viva merger as a case study.
http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=18548& recordCount=760

TANPK123      ( Date: 23-May-2019 18:13) Posted: hi why keep dropping ?

 

hi why keep dropping ?

 

OUE H-Trust  announced distribution -  1.18 S' pore cents per Stapled Security (Jan 1, 2019 to March 31, 2019), comprising entirely taxable income distribution from OUE Hospitality Real Estate Investment Trust (OUE H-REIT).

Securityholders whose securities accounts with Central Depository (Pte) Limited (CDP) are credited with Stapled Securities@5pm on Friday, May 10, 2019 will be entitled to the distribution that will be paid on (Thurs) June 5, 2019.

teeth53      ( Date: 12-Feb-2019 18:47) Posted: OUE Hospitality Real Estate Investment Trust (OUE H-REIT).1.28cents per Stapled Security (1 Oct, 2018 - 31 Dec, 2018).  CDP crediting (Stapled Securities) on Fri, 8-02-19, Share-holders will be entitled to distribution be paid on Thurs, 28 Feb, 2019.

 

10 largest SGX listed counters distributed dividends quarterly have outperformed with real estate Reits making up 8, according to SGX data.

 

Wondering good or bad with regard to the mergers?.

Goldfinger      ( Date: 08-Apr-2019 19:56) Posted: Am a bit disappointed as I like the pure play Hotel assets. Especially with Jewel opening.

 

Crown Plaza Changi is the only airport hotel next to Jewel. Yotel is like a fancy hostel or dorm. I would never stay in Yotel.

 

Am a bit disappointed as I like the pure play Hotel assets. Especially with Jewel opening.

 

OUE Commercial Real Estate Investment Trust (OUE C-Reit) and OUE Hospitality Trust (OUE H-Trust) are proposing to merge in a cash and stock deal that will create one of Singapore's largest Reits with total assets of about $6.8 billion

The proposed OUE merger is the latest major consolidation among Singapore-listed property trusts.

In October 2018, ESR-Reit and Viva Industrial Trust completed their merger into a combined entity with assets of about $3 billion at the time.

The latest merger will be effected OUE C-Reit will acquire OUE H-Trust by paying OUE H-Trust holders, for every OUE H-Trust stapled security held, $0.04075 in cash plus 1.3583 new OUE C-Reit units.

 

OUE Hospitality Real Estate Investment Trust (OUE H-REIT).1.28cents per Stapled Security (1 Oct, 2018 - 31 Dec, 2018). 

CDP crediting (Stapled Securities) on Fri, 8-02-19, Share-holders will be entitled to distribution be paid on Thurs, 28 Feb, 2019. 

 

OCBC Investment Research is maintaining ?overweight? on Singapore?s hospitality sector as it sees value in some of the hospitality REITs under its coverage at their current unit prices.

OUE Hospitality Trust (OUE HT), Far East Hospitality Trust (FEHT) and Ascott Residence Trust (ART) are OCBC?s top ?buy? picks with fair value estimates of 79 cents, 67.5 cents and $1.18, respectively.

OUE Hospitality Trust (OUE H-Trust) reported 4Q18 DPS tof 1.28 cents, 0.8% higher from 1.27 cents in 4Q17. It brings DPS for FY18 to 4.99 cents, 2.9% lower than 5.14 cents in FY17.

OUE H-Trust closed this morning@$0.715 cents.

 

When respective players hit their respective TP, has profit to take n the good thing is, at least it traded up above 0.90c b4 most players start to book their profit.

It common trading up or down is never on a straigth line.

teeth53      ( Date: 04-Jan-2018 09:18) Posted: 0.88c. Px target reach liao. Wondering what next?. Shifu8888      ( Date: 23-Dec-2017 15:42) Posted: In the money..... $0.88 is a matter of time. Privatization candidate

 

Huh.... so fast from $.925 to now $.815............

teeth53      ( Date: 01-Feb-2018 14:38) Posted: Today high, $0.925 cents, move above TP. Don know can c $1/- bo. :)

 

Dear Stapled Securityholders,

For FY2017, OUE H-Trust has delivered a 12.7% increase in distributable income (DI) as a result of higher income from the hospitality and retail segments.

The highest DI achieved in a year since listing. On 19 Dec 2017, OUE H-Trust successfully refinanced all of its outstanding term loans, amounting to $859 million, well ahead of their maturity.

As@Dec 31, 2017, OUE H-Trust&rsquo s property portfolio value@$2.22 bil. This yr&rsquo s annual report included OUE H-Trust&rsquo s 1st sustainability report, demonstrating our commitment to sustainable business strategies which support good environmental, social n governance practices.

 

Today high, $0.925 cents, move above TP. Don know can c $1/- bo. :)

 

0.88c. Px target reach liao. Wondering what next?.

Shifu8888      ( Date: 23-Dec-2017 15:42) Posted: In the money..... $0.88 is a matter of time. Privatization candidate Shifu8888      ( Date: 08-May-2017 13:04) Posted: Right price is $0.80 and above. For yield and capital gain..... I had since been promoting it at mid 60s. Better return than bank shares, the latter is overbought now.

 

Sent my opinions to you personally.

Clipper      ( Date: 23-Dec-2017 16:20) Posted: bro Shifu888, I agree with you this OUE Hospitality Trust has potential to move up in price and DPU given the increase in Traffic/Transit at Changi Airport and Tourists for the Mandarin Orchard hotel. Also, the slowdown in new hotel rooms should improve yield. Can you share more about this REIT becoming a Privitization Candidate. Thank you. Shifu8888      ( Date: 23-Dec-2017 15:42) Posted: In the money..... $0.88 is a matter of time. Privatization candidate