OUE Comm Reit

OUE Comm Reit: Against forecasts, 2Q14 DPU was 5.1% higher at 1.43¢, while distributable income was 5.5% higher at $12.5m. Gross revenue was flattish at $18.7m while NPI was 4.6% higher at $14.3m. OUE Bayfront and Lippo Plaza achieved positive rental reversions of 6.1% and 4.3% respectively for renewals. Occupancy stood at 96.8%. Aggregate leverage stood at 39.5% with average cost of debt of 2.59%. There is no refinancing requirement until 2017. Management expects Office demand in Singapore to remain healthy, with rents extending growth in 2014, but growth from the Shanghai front might be subdued on new supply in Puxi. NAV at end Jun stood at $1.06, translating to 0.8x P/B. Annualized yield 2Q14 yield is 6.9%.