Broker: Maybank Research Pte Ltd
Date of Report: July 23, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
Stock: OUE REIT (OUEREIT SP)
Action: BUY
Target Price: SGD0.45 (+29% upside)
Current Price: SGD0.37
- Key Idea: OUE REIT delivered a resilient 1H26 performance, with a 28.6% YoY rise in DPU to 1.26 cents. This was driven by stable commercial contributions, strong hospitality segment growth, and lower finance costs. The hospitality segment saw robust revenue and NPI growth, with RevPAR up 10.7% to SGD258.
- Balance Sheet: Gearing remained stable at 41.5%, and cost of debt declined to 3.6%. A proposed SGD500m divestment of Crowne Plaza Changi Airport could lower pro-forma leverage to 36.6%, enabling further acquisition capacity.
- Growth Plan: Management is exploring divestment of its stake in One Raffles Place, potentially replacing income loss with further stake acquisition in Salesforce Tower. Successful asset sales are expected to narrow the REIT’s P/NAV discount and demonstrate strong asset monetisation capabilities.
- ESG Progress: OUE REIT is advancing sustainability initiatives, with over 95% of its portfolio green-certified and nearly 70% of debt linked to sustainable financing. The group aims to further improve ESG disclosures and board diversity.
Implications: The BUY call with a SGD0.45 target price is supported by resilient earnings, asset recycling strategies, and strong hospitality segment growth. Investors may benefit from the current value proposition, with a forecasted dividend yield of 7.2%.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can access the full research report from the broker’s website.
