OUE Hospitality trust

OUE Hospitality trust released 3Q13 results which were above estimates. Distributable income for the period came in at $16.3m for the period from 25 July to 30 September 2013 was 2.7% ahead of forecast, while DPU for the period came in at 1.24c, 2.5% higher than the forecast of 1.21c. The outperformance was led by a Strong show in the hotel room revenue, which contributed to higher gross revenue recorded by Mandarin Orchard Singapore on a Revenue per Available Room (RevPAR) basis of $261, vs the forecast RevPAR of $253. For Mandarin Gallery, higher revenue was recognised from the leasing of advertising panels and short term leasing of outdoor space. Going forward, OUE H-Trust will continue to look for opportunities in Singapore and other key international cities for accretive acquisitions, so as to achieve growth in distribution and net asset value of OUE H-Trust. Operating performance for FY13 is expected to be profitable and OUE H-Trust expects to meet the forecast distribution for FY13. At the current price, OUE-HT trades at 1x P/B and an annualized yield of 7.4% for FY13. Latest broker ratings as follow: Deutsche maintains Buy with TP $0.94