OUE CT

OUE CT: 4Q14 DPU of 1.44¢ was 5.1% better than forecast, while distributable income was 5.5% higher than forecast at $12.6m. Revenue was 12% higher than guided at $19.6m while NPI was 14.9% ahead at $14.4m, due to better occupancy and rental reversions than budgeted. Occupancy improved 0.8ppt q/q to 98% with WALE of 2.8 years. Aggregate leverage at 38.3% with average cost of debt of 2.8%. While the performance at OUE Bayfront would likely be sustained in 2015 due to a lack supply of prime office space, management does flag a subdued rent outlook for Lippo Plaza in Puxi, Shanghai, given an expected onslaught of supply. OUECT is currently trading at 7% annualized 4Q14 yield and 0.75x P/B