OUE

OUE: UOB Kay Hian maintains Buy with TP $3.04. The house notes that a special 1-for-6 distribution-in-specie of OUE H-Trust (or S$0.15 dividend and 6.3% yield) is in sight following the listing of OUE C-REIT. A further 8% dividend payout is a possibility following the example of OUE HT. OUE has established a capital recycling platform to enable the parent to focus on higher-value development activities while simultaneously deriving a stable income stream through its stakes in its trusts and property management platform. Maintain BUY with a lower target price of $3.04 (from $3.12), based on a 30% discount to our revised RNAV of $4.34/share (post 21 cent dividend).