OUE Hospitality Trust (OUE-HT)

OUE C-REIT and OUE-HT unitholders recommended to vote in favour of merger

SINGAPORE (July 10): The Independent financial advisers (IFAs) of OUE Commercial REIT (OUE C-REIT) and OUE Hospitality Trust (OUE-HT) have advised the directors of both trusts to recommend unitholders vote in favour of the merger at the upcoming extraordinary general meeting (EGM).

Under the proposed merger deal, OUE C-REIT will acquire all stapled securities of OUE-HT via a scheme of arrangement.

For every OUE-HT stapled security held, OUE C-REIT will pay 4.075 cents in cash plus 1.3583 new OUE C-REIT units.

RHB's rundown on REITs for 2018

SINGAPORE (Jan 5): RHB expects selective REITs to continue to remain in favour in 2018 after climbing 21% last year.

While valuations are slightly above mean and rate hike threat persists, RHB says the strong economic pick-up should boost underlying demand and continue to support REITs.

"We remain 'overweight' on the sector," says analyst Vijay Natarajan in a Friday report.

However, Natarajan believes investor attention would now turn to REITs that are likely to benefit from the current economic growth cycle and deliver DPU growth.

The time to look into hospitality REITs is now

SINGAPORE (Aug 4): Chong Kee Hiong, CEO of OUE Hospitality Trust (OUE-HT)’s manager, senses from his regular interaction with investors that the market is looking for an inflection point in the hotel sector.

“More investors are looking into this segment and we are getting more enquiries, and the same group of investors is seeing other hospitality players. It’s a very macro picture for these investors,” Chong says.

The local hotel sector has been in a slump for years as a result of a surge in the supply of rooms that outpaced demand.

Brighter days ahead for OUE Hospitality Trust

SINGAPORE (Aug 2): Religare has downgraded OUE Hospitality Trust (OUE-HT) to “hold”, with a lower target price of 74 cents.

This comes as the REIT reported a 9.2% y-o-y decline in 2Q16 revenue, as well as a 19.1% dip in DPU in the corresponding period.

Describing it as a “weak quarter”, Religare analyst Pang Ti Wee says that the REIT’s 2Q16 earnings fell below estimates, with revenue and DPU accounting for 21% and 16.9% of full-year forecasts respectively.

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