'Hold' OUE Commercial REIT on mixed performance, divestment: analysts

CGS-CIMB analysts Lock Mun Yee and Eing Kar Mei have maintained their “hold” call on OUE Commercial REIT (OUE C-REIT) with a lower target price of 41.5 cents from 48.5 cents on a mixed performance from the REIT.

OUE C-REIT reported distribution per unit (DPU) of 1.43 cents for the 2HFY2020 ended December and 2.43 cents for the FY2020, which came in slightly below the analysts’ expectations at 92.4% of their forecast.

The analysts also noted that REIT’s office segment continued to perform well at a stable committed portfolio occupancy of 92.5% as at end December 2020, with its hospitality segment underpinned by master lease arrangements.