Tuesday, August 2, 2016

OUE Hospitality Trust

OUE Hospitality Trust: (S$0.69) 2Q16 misses as hospitality and retail challenges bite
- DPU slumped 39.5% to 0.92¢ on an enlarged unit base, alongside a weaker distributable income of $16.6m (-18%) amidst a spike in net finance expenses
- Revenue and NPI slid 9.2% and 10.2% to $26.9m and $23.2m respectively on weaker contributions from both its retail and hospitality segments.
- Despite continued macro headwinds, OUEHT is expected to see additional revenue and income to come from the Crowne Plaza Changi Airport Extension, which has started operations.
- OUEHT currently offers a 2Q16 annualised yield of 5.3% and trades at 0.9x P/B. The street currently has 4 Buy and 4 Hold ratings on the counter with TP of $0.73.

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