OUE Hospitality Trust (OUE HT)

Merger ticks all the right boxes for OUE Commercial REIT, but analysts remain cautious

SINGAPORE (Nov 19): OUE Commercial Trust (OUECT) seems poised to thrive on its recent merger with OUE Hospitality Trust (OUEHT), which appears to have ticked all the boxes for the REIT. 

OUECT’s latest set of financial results for 3Q19 ended September saw it register increases across several key financial metrics. 

SGX explains why Singapore is Asia's largest global REIT platform

(May 6): On March 27, during Manulife US Real Estate Investment Trust’s Investor Day event, Ronald Tan, director of Equity Capital Market at the Singapore Exchange, asked the audience a few questions. It was to gauge the public’s reception to various asset classes. Who would want another office REIT, Tan asked. Almost the entire audience of 400 raised their hands. MUST is an office REIT and the audience comprised MUST unitholders.

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OUE merger comes with plenty of benefits, but not without potential impediments: DBS

SINGAPORE (April 10): DBS Vickers Securities is highlighting myriad benefits to the proposed merger of OUE Hospitality Trust (OUE HT) and OUE Commercial Trust (OUE CT), but also cautions of “potential impediments” post the merger.

The research house has “buy” calls on both trusts with the respective target prices of 85 cents and 60 cents.

2019 will be a good year for hospitality, but risks from trade tensions remain: OCBC

SINGAPORE (Jan 16): 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 HT kept at 'buy' by analysts on brighter outlook

SINGAPORE (Nov 8): Despite announcing a 5.9% y-o-y drop in 3Q18 DPS to 1.28 cents, analysts still remain upbeat on OUE Hospitality Trust (OUE HT). The drop in DPS was mainly due to lower Retail revenue and an absence of income support for Crowne Plaza Changi Airport (CPCA).

The trust’s distributable income dropped 5.4% in 3Q18 to $23.3 million from $24.7 million last year. And gross revenue saw a 2.2% drop to $33.2 million compared to $34.0 million a year ago.

OUE Hospitality Trust posts 5.9% lower 3Q DPS on lower revenue & absence of income support

SINGAPORE (Nov 7): The manager of OUE Hospitality Trust (OUE HT) has announced a 3Q18 distribution per stapled security (DPS) of 1.28 cents, down 5.9% from its 1.36 cent DPS a year ago.

The lower distributable income of $23.3 million, which is 5.4% down from the previous year’s distributable income of $24.7 million, was largely due to the absence of income support for Crowne Plaza Changi Airport (CPCA) hotel as it was fully drawn down as at 3Q17.

OUE Hospitality Trust's longer-term outlook remains bright despite 2Q hiccups: CGS-CIMB

SINGAPORE (July 30): CGS-CIMB Research is maintaining its “add” recommendation on OUE Hospitality Trust (OUE HT) while lowering its target price to 89 cents from 92 cents, after adjusting cost of equity (COE) assumption up to 8.6% compared to 8.4% previously.

OUE Hospitality Trust posts 3.3% lower 2Q DPS of 1.17 cents on revenue decline

SINGAPORE (July 29): The manager of OUE Hospitality Trust (OUE HT) has declared a 2Q distribution per stapled security (DPS) of 1.17 cents, down 3.3% from its 2Q17 DPU of 1.21 cents on lower revenue from both its hospitality and retail segments.

OUE HT is a stapled group comprising OUE Hospitality REIT and OUE Hospitality Business Trust. The former’s asset portfolio comprises two hotels, Mandarin Orchard Singapore (MOS) and Crowne Plaza Changi Airport (CPCA), while the latter trust is dormant.

Is hospitality REIT sector headed for a multi-year upswing?

SINGAPORE (Apr 10): CIMB is maintaining its "overweight" on the hospitality sub-sector given expectations of an earlier and stronger than expected recovery in industry RevPAR.

Unlike the residential and office sub-segments such which could face higher supply come 2021, CIMB says hotels have minimal new supply.

"Hence, the cyclical recovery could potentially lead to a multi-year upswing," says analyst Yeo Zhi Bin in a Monday report.

Hospitality REITs in for multi-year upswing from stronger than expected RevPAR recovery

SINGAPORE (Jan 4): CIMB is "overweight" on the hospitality REIT sub-sector given RevPAR for Singapore hotels is expected to recover stronger at 7% y-o-y in 2018 versus 3% previously.

With supply tapering off and demand continuing to dial up, CIMB expects RevPAR climbing another 5% to $224 in 2019, potentially reaching the previous peak recorded in 2012.

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