OUE H-T: Share price hit a new all-time high of $0.97 this morning. The outperformance of the REIT could perhaps be attributed to the hotel trust boasting the highest forward yield of 7.3% versus peer average of 6.9%.
Additionally, the slated completion of Crowne Plaza Changi Airport acquisition in Feb '15 is also expected to be income accretive. The construction of Crowne Plaza’s future extension is targeted to be completed by end 2015 and would leverage on the expansion plans of Changi Airport including the addition of a fourth terminal and Jewel retail development.
Looking into 2015, while sentiment in the tourism industry may be slightly dented by the uncertain global economic outlook, this may be mitigated by domestic events as Singapore celebrates its Golden Jubilee year and hosts the 2015 SEA Games and World Rugby Sevens.
OUE HT currently sits in Market Insight’s yield model portfolio (entry price at $0.91), and has since reaped a total return of ~8.5% year-to-date.
Overall, the street has 7 Buy, 2 Hold and 2 Sell ratings with a consensus TP of $0.99 on the stock.
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