OUE Commercial Reit

OUE Commercial Reit (OUECT): StanChart initiates at Outperform with TP $0.86. OUECT owns OUE Bayfront in S’pore and Lippo Plaza in Shanghai, collectively worth $1.6b. The house expects NPI and DPU to grow 17% and 9% pa in 2015/16 with retail rental reversions in Shanghai and strong office rents in Spore. Forecasts OUECT to deliver 6.9% yield in FY14e, growing to 7.7% in FY15e, one of the highest among office REITS.