OUE HT

OUE HT: Quite a bit of interest on the counter. We saw DBSV initiating coverage on the counter this week, while Standard Chartered reiterated its O/p call this morning. SCB expecting liquidity to improve for OUE Hospitality Trust (OUEHT) after its free float rose to 66% from 54%, after OUE distributed 151.7m units via a dividend in specie. While going forward, they believe that OUE HT could potentially acquire Crowne Plaza chang Airport at a 4.5% NPI yield. If 100% debt fundend, the potential transaction could be 4% accretive to distributions. At 8.2% 2014 yield, OUE now offers the highest yield among SREITs hospitality plays with pure Singapore exposure, whose average stands at 7.3%.