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)
- Target Price (Fair Value): SGD 0.41
- Last Close: SGD 0.370
- Key Idea: OUE REIT, a diversified Singapore REIT, reported strong 1Q26 results with revenue and net property income up 6.7% and 8.4% year-on-year, respectively. Growth was led by a robust rebound in the hospitality segment and resilient commercial asset performance. Strategic capital reallocation is underway, including the acquisition of a 19.9% stake in Sydney’s premium-grade 180 George Street (Salesforce Tower), providing quality exposure to Australia and potential for further stake increase.
- Yield: Estimated FY26E distribution yield of 6.4%.
- Outlook: Portfolio is ~95% anchored in Singapore, with stable operations and resilient values. Continued robust leasing momentum expected in office assets. Management is exploring divestment of One Raffles Place and expects further interest savings as cost of debt trends lower.
- Actionable Insight: Investors can consider accumulating OUE REIT for its attractive yield and potential for further DPU growth driven by capital recycling and accretive acquisition opportunities.
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/group/investors
