OUE REIT 1Q 2025 Analysts' Views

[强] We are pleased to have received a vote of confidence from our covering analysts following the release of our 1Q 2025 Business Updates:

CGS International Securities Singapore upgraded OUE REIT’s rating to “ADD”, citing our attractive FY25F DPU of 7.3% and undemanding price-to-book value of 0.47 times
Beansprout, DBS Bank, OCBC and PhillipCapital maintained their “BUY” ratings
KGI 凱基 reiterated “OUTPERFORM”
Maybank raised our 12-month price target and increased FY25 and FY26 DPU estimates by 3.4% and 7.0% respectively

Analysts highlighted OUE REIT’s relative value compared to its pure-play peers. While the hospitality segment may face sector-wide headwinds in 2025, our performance is expected to remain resilient, supported by steady contributions from our commercial assets, as well as potential interest savings from ongoing and future refinancing.

Key takeaways:

Steady Operating Performance

1Q 2025 revenue and NPI were largely in line with the analysts’ forecast
Office and retail portfolios continued to demonstrate resilience, with both revenue and NPI increased by 2.2% YoY on a like-for-like basis
Sound operating metrics with office portfolio’s committed occupancy rising to 96.3% in 1Q 2025
Mandarin Gallery’s committed occupancy reached 99.5% in 1Q 2025 – the highest level achieved since COVID-19

Proactive Capital Management

Average cost of debt improved by 50 bps from 4.7% to 4.2% in 1Q 2025
Financing costs declined significantly by 11.3% YoY to S$22.6 million in 1Q 2025 versus S$25.5 million in 1Q 2024

The Edge “CGSI, Maybank raise OUE REIT’s TP slightly on ‘steady’ commercial assets” https://www.theedgesingapore.com/capital/brokers-calls/cgsi-maybank-raise-oue-reits-tp-slightly-steady-commercial-assets

$华联房地产投资信托(TS0U.SI)$

Modified in.05-13

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OUE REIT 1Q 2025 Analysts' Views

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