Broker: OCBC Group Research
Date of Report: 22 April 2026
Excerpt from OCBC Group Research report.
Report Summary
- Stock: OUE REIT (OUEREIT SP EQUITY)
- Action: BUY (Reiterate)
- Fair Value (Target Price): SGD 0.41 (raised from SGD 0.40)
- Last Close: SGD 0.370
- Key Idea: OUE REIT is a diversified Singapore-based REIT focused on income-generating hospitality, retail, and office assets. The portfolio remains resilient with ~95% assets in Singapore and a recent expansion into Sydney, Australia via a 19.9% stake in 180 George Street.
- Highlights:
- 1Q26 revenue and net property income (NPI) rose 6.7% and 8.4% YoY, mainly due to a strong hospitality rebound and stable commercial segment.
- Active capital reallocation: acquired a stake in Sydney’s Salesforce Tower; exploring possible divestment of One Raffles Place to enhance returns.
- Distribution per unit (DPU) yield forecast for FY26E and FY27E is 6.4% and 6.7%, respectively.
- Aggregate leverage increased to 41.5% post-acquisition, but cost of debt improved to 3.7% and is expected to trend lower.
- Management remains cautious amid Middle East conflict but expects stable margins and continued growth.
- Implications: The report recommends a BUY on OUE REIT, citing robust performance, disciplined capital reallocation, and an attractive yield. Investors are advised to focus on the stock for its stable income prospects and potential upside from strategic portfolio moves.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com
