SINGAPORE (June 10): DBS Group Research analysts Rachel Tan and Derek Tan have maintained their “buy” calls on OUE Commercial REIT (OUE C-REIT) with a lower target price of 50 cents from its previous 60 cents.

In a Monday report, both analysts feel that the REIT offers an attractive value proposition at its current 6.3-6.6% FY20F-FY21F yield, 0.65x price to net asset value (P/NAV), and -2SD following Singapore’s gradual re-opening after its circuit breaker measures.

This comes as consensus has placed a “hold” call on the REIT for its exposure to the retail and hospitality portfolio, which directly suffered from the impact of Covid-19. The retail and hospitality portfolio comprises some 40% of OUE C-REIT’s group revenue.

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