Broker Name: OCBC
Date of Report: 24 July 2026
Excerpt from OCBC report.

Report Summary

OUE REIT (OUEREIT SP)
Action: BUY
Target Price: SGD 0.410
Key Insight: OUE REIT’s 1H26 distribution per unit (DPU) rose 28.6% year-on-year, ahead of expectations, driven by strong hospitality performance, lower borrowing costs, and contributions from the newly acquired Salesforce Tower. Capital management remains sound, with 41.5% leverage and expectations of further cost savings. Despite transitional office vacancies and the anticipated departure of a major tenant (Deloitte), management is confident in backfilling space and maintaining resilient office demand in Singapore. The REIT is also considering increasing its stake in Salesforce Tower and may divest Crowne Plaza Changi Airport to reduce expensive debt.
Actionable Insight: OUE REIT remains attractive for investors seeking yield and growth, with upside potential from further acquisitions and asset repositioning.
Keppel DC REIT (KDCREIT SP)
Action: BUY
Target Price: SGD 2.86
Key Insight: Keppel DC REIT’s 1H26 DPU rose 11.3% year-on-year, supported by strong rental reversions and a new acquisition in Tokyo. Portfolio occupancy slipped to 92.5% due to a single lease expiry, but excluding this, occupancy remains stable. Aggregate leverage improved to 34.0%, leaving ample debt headroom for future acquisitions. Most of the portfolio’s power costs are recoverable from clients, limiting exposure to energy price volatility.
Actionable Insight: Keppel DC REIT is well-positioned for further growth and offers investors a defensive yield play with upside from future acquisitions and rental escalations.
Above is an excerpt from a report by OCBC. Clients of OCBC can access the full research report from the broker’s website.
OCBC research website