OUEHT

OUEHT: Maiden 4Q13 results posting DPU of 1.67¢, 2.5% higher than forecast, while distributable income was 2.3% higher than forecast at $21.9m. Gross revenue and NPI of $29m and $25.5m were marginally better than forecast, on better performance from F&B revenue from the Mandarin Orchard hotel, offset by slightly lower room revenue relative to forecast. RevPAR achieved was $249 vs forecast of $252. WALE by NLA: 1.76 yrs. Gearing was 32%. Management is expecting a modest recovery this year, on US and Europe recovery and a bumper MICE schedule, both which might bode well for the Singapore Hotel industry. At NAV of $0.92, OUEHT trades at 0.96x P/B at yesterday’s closing price.