On this, Lock and Eing have also reduced their DPU estimates for FY2021 and FY2022 by 4% and 12.1% respectively, which takes into account the divestment, absence of capital recycling and a “more modest hospitality segment recovery”. OCBC Investment Research (OIR) analyst Chu Peng has, similarly, rated OUE C-REIT at “hold”. Unlike the analysts at CGS, Chu has increased her fair value estimate to 40 cents from 39 cents The increase is mainly due to the REIT’s divestment of its 50% interest in OUE Bayfront, OUE Tower and OUE Link.
SEE:OUECT reports 26.6% y-o-y decline in DPU, but special payout possible from asset sale
“Management sees this as an opportunity to optimise capital structure while maintaining exposure to Singapore office market,” she says.