OUEREIT    Last:0.35   -

OUE Comm-REIT is taking off, Hurry !

OUE C-REIT reports net property income of $62.7 mil in 3QFY2023, 28.9% higher y-o-y

 

Don't sell to the shortseller. Seems like they are covering their position.

 

As a reits and value investor, I am salivating! Some funds are taking turn to dump their reits, equities and whatever else. First OUE Commercial, then Lendlease, then blue chip reits like MPACT, Capitaland Integrated, and today they are trying Mapletree Logistic! I am looking at Yield on Cost almost better than any given fixed income products! What we need to do is just add as and when we can and our average YOC will be amazing. Yes, it is a challenge that reits will face higher interest cost and thus, a lower DPU is a given. However, lower doesnt mean don' t have. With YOC inching up to 7,8 or even 10% after adding more at current depressed price, these assets can continue to be held long term and the returns will be out sized when their unit prices claw back to their normal valuation. 

 

This guy got nothing to write, but if he don't write then he got no work liao. End Oct reporting, if the earning is good, price sure up.

 

What they should do is sell the hospitality assets at a high price whilst concurrently buying back shares at the current signficant discount to NAV. 

 

Hospitality is quite cyclical though - not sure if that really should be the angle and given that the sector is doing well, it would be questionable if they can acquire at the right valuations. We wouldnt want to see them do anything dilutive.

Joelton      ( Date: 05-Oct-2023 10:28) Posted: OUE Commercial Reit should consider turning hospitality-centric for better valuation  SINGAPORE&rsquo S hotel owners are raking it in amid the tourism sector&rsquo s strong recovery post the Covid-19 pandemic. International visitor arrivals and hotel revenue increased sharply in 2023 from a year ago.   Industrywide, revenue per available room (RevPAR) among Singapore hotels rose 41 per cent year on year (yoy) for the first eight months.   Year-end festivities will likely bring even more cheer to hotel owners. With higher revenue, hotel owners can mitigate rising expenses due to inflation.   In the first half of the year, RevPAR at Hilton Singapore Orchard, which has 1,080 guest rooms, was S$246, up 17 per cent from a year ago.   Crowne Plaza Changi Airport, which has 563 guest rooms, saw RevPAR rise 54 per cent yoy to S$207 in H1. RevPAR for both hotels in H1 was higher than pre-Covid in 2019.   Even as these two hotels are buzzing, however, the unit price of their owner OUE Commercial Real Estate Investment Trust : TS0U -2.13% (OUE C-Reit) languishes. As at Oct 4, OUE C-Reit traded at S$0.23 &ndash or a 61 per cent discount to its end-June net asset value (NAV) of S$0.59.   Addressing undervaluation Possibly, OUE C-Reit&rsquo s sponsor OUE : LJ3 -0.95% can distribute units it holds in the trust to its shareholders. With better free float and trading liquidity, OUE C-Reit might trade better.   Based on the latest available annual report, OUE&rsquo s total interest in OUE C-Reit is 48.4 per cent.   If OUE distributes to its shareholders one OUE C-Reit unit for every one OUE share held, OUE shareholders will get a distribution worth around 22 per cent of OUE&rsquo s share price &ndash based on share prices as at Oct 4. Such an exercise would see OUE distribute over 15 per cent of OUE C-Reit.   OUE shareholders should be happy receiving OUE C-Reit units, as the latter&rsquo s distribution yield tops the former&rsquo s dividend yield.   Another option, given OUE C-Reit&rsquo s steeply discounted price, would be privatising the trust at an offer price of around book value. This would better help unitholders realise value.   Yet, OUE trades poorly &ndash its share price as at Oct 4 was a 76 per cent discount to its end-June NAV of S$4.33. Thus, OUE is hardly well-placed to privatise OUE C-Reit.   Better valuations Perhaps, OUE C-Reit&rsquo s manager can aim for better unit pricing by becoming hospitality-centric. Hospitality trusts with smaller portfolios have been able to garner better valuations.   CDL Hospitality Trusts : J85 -0.97%, Far East Hospitality Trust : Q5T -1.64% and Frasers Hospitality Trust : ACV -0.99% were trading at discounts of 28 per cent, 34 per cent, and 22 per cent, respectively, to their end-June NAVs as at Oct 4.   Should OUE C-Reit trade closer to the book value multiples of the above hospitality trusts, say, at a discount to NAV of 40 per cent, the uplift in unit price will be over S$0.12 per unit.   OUE C-Reit owns a diversified Singapore-centric property portfolio. In Singapore, besides the two hotels, it owns three predominantly office assets in the Central Business District (CBD): OUE Bayfront, One Raffles Place and OUE Downtown Office. It also owns the Mandarin Gallery mall along Orchard Road and commercial building Lippo Plaza in Shanghai, China.   Based on its half-year results&rsquo presentation, the two hotels accounted for about 29.3 per cent of OUE C-Reit&rsquo s property portfolio by asset value.   OUE C-Reit&rsquo s manager could, perhaps, raise the hospitality component to 60 per cent or more of the trust&rsquo s portfolio value in order to get investors to value the trust largely for its hospitality exposure.   Among various property segments, structural drivers for hospitality assets, warehouses and data centres appear to be strong.   Hotels here benefit from growing regional prosperity. The hosting of major events here, such as concerts, conventions and sporting events, drives spikes in room rates. Singapore&rsquo s safety and connectivity, coupled with investments to upgrade her offering to visitors, further support the hospitality segment.   OUE C-Reit can become hospitality-centric by selling some non-hospitality assets. Some of the proceeds raised could then be used to fund purchases of hospitality assets. Still, the trust may struggle to buy hotels in Singapore. These assets are often tightly held and deals would likely be struck at thin yields.   OUE C-Reit could also try enticing listed hotel-owning property-related groups to inject their hotels into it in exchange for units in the trust. Some possibilities include Sofitel Singapore City Centre in Tanjong Pagar or Sheraton Towers Singapore in Newton &ndash owned by GuocoLand : F17 0% and Bonvests Holdings : B28 0%, respectively.   Listed property-related groups that trade at huge discounts to NAV may find OUE C-Reit is a more efficient vehicle through which to own their hotel assets. If required, OUE can give parties who inject hotels into OUE C-Reit ownership interest in the trust&rsquo s manager.   Alternatively, OUE C-Reit could explore merging with a hospitality trust. A merger may see OUE C-Reit&rsquo s unitholders swap units in an undervalued vehicle for securities in another entity that trades better.   While OUE could lose some of its fee revenue from managing OUE C-Reit, it ought to be more than amply compensated by the rise in value of its ownership interest in the trust.   Prospects for OUE C-Reit&rsquo s assets appear fine. The trust&rsquo s Singapore hotels and Mandarin Gallery will benefit from continued growth in visitor arrivals.   Ongoing asset enhancement work at Crowne Plaza Changi Airport can boost its competitiveness. The trust&rsquo s Singapore CBD office buildings also enjoy support from office occupiers looking for quality properties.   Nevertheless, OUE C-Reit&rsquo s severe undervaluation needs correcting.   OUE C-Reit was listed in 2014, with a focus on commercial property. A merger with OUE Hospitality Trust in 2019 saw OUE C-Reit gain hospitality exposure.   Perhaps, OUE C-Reit&rsquo s next chapter should see it enhance value for investors by turning hospitality-centric.

 

 

Yeah! Slowly slowly recover ok. In the money liao

 

The ceo wont know and cannot control the share price. Share prices is determined by buyer and seller. Low share prices doesn't affect shareholders (including major shareholder) if they don't sell. e.g OUE 49% (Riady family) or Gordon tang family 25%. They still getting dividends. It will actually benefit the rich, of they decided to buy more. (But cant increase much of their holdings also). As share prices is determined by the "minority" trade (recent total selling down is probably less than 2 percent of the total shareholdings). Other than the 10percent return on the AEI, it will increase the valuation of crown plaza as in the per key value will increase.

RickyCheng      ( Date: 19-Sep-2023 14:54) Posted: he says in an interview with The Edge Singapore.    With the main goal of creating long-term value for unitholders and stakeholders, the CEO expects the newly announced AEI at CPCA to be distribution per unit (DPU) accretive for OUE C-REIT. With the estimated capital expenditure of up to approximately $14 million for OUE C-REIT, the AEI is expected to generate a stabilised return on investment of approximately 10%. https://www.theedgesingapore.com/capital/reits-report-2023/oue-c-reits-prime-singapore-portfolio-delivers-sustained-growth Rosy pictures.    Din ask him the reason(s) of recent dip in prices?

 

he says in an interview with The Edge Singapore.   

With the main goal of creating long-term value for unitholders and stakeholders, the CEO expects the newly announced AEI at CPCA to be distribution per unit (DPU) accretive for OUE C-REIT. With the estimated capital expenditure of up to approximately $14 million for OUE C-REIT, the AEI is expected to generate a stabilised return on investment of approximately 10%.

https://www.theedgesingapore.com/capital/reits-report-2023/oue-c-reits-prime-singapore-portfolio-delivers-sustained-growth

Rosy pictures.    Din ask him the reason(s) of recent dip in prices?

 

Good price u got, dividend is not bad if paying the same %. Fd, ssb and t bill will not have such yield.

HVRRVH      ( Date: 19-Sep-2023 09:41) Posted: 70000 shares now with average cost of $0.2175. In a ' fightable' position factoring in future dividends and hopefully, recovery of share price in itself.  HVRRVH      ( Date: 15-Sep-2023 15:15) Posted: Chui. Other reits are looking up yet this fellow tried and successfully achieved new low!!! Luckily testing with small position first. Dare we say it may go below 20 cents? Right there waiting.

 

70000 shares now with average cost of $0.2175. In a ' fightable' position factoring in future dividends and hopefully, recovery of share price in itself. 

HVRRVH      ( Date: 15-Sep-2023 15:15) Posted: Chui. Other reits are looking up yet this fellow tried and successfully achieved new low!!! Luckily testing with small position first. Dare we say it may go below 20 cents? Right there waiting.  HVRRVH      ( Date: 31-Aug-2023 11:31) Posted: Valuation is too good too resist. Establish a fresh position with 35,000 shares first. For the past few days/weeks, it seems to be the target of major selling amid a general weak/weakening SReits market. Ample room to average down if it continue to sell down.

 

First, I must acknowledge the contributions of n3wbie & HVRRVH, the contents of both help inform me further about this Reit. For I' m waiting to zoom in more if it falls
a few cts more below my average, small player though. I will only offer the same that I' ve argued before in this column. At 20.5c, it is trading at 65% discount to its nav of 59ct. You go & check what the assets are, yourselves. Or, why not sell your HDB flat to me at 65% discount ! , not to talk about these prime assets in Sg. I' m unwilling to disclose this information at this juncture for I' m just holding 8k at 21+ cts. Perhaps, you can see this as compensation for my withholding of information when I was trading Oue & arguing with n3wbie etc.    wyeo.

 

Today total shares transactedare 19,497,700 shares. At 17:04:05 today, 1,406,400 shares bought from seller at 20.5 cents. This is much lesser than last Friday when at 17:04:40 timing, 21,407,500 of shares were bought at 21 cents from the seller

 

It will be 5pm soon, observe the number of shares transacted and price after 5.00pm , Also to take note whether it is BID or ASK. for the price and volume.

 

Very chialat, I think many people got stuck now, including me huhuhu

jm2212      ( Date: 18-Sep-2023 09:37) Posted: Really jiatlat, i am so heavily invested into 1st reits, oue comm reits and oue, loss 50%

 

Really jiatlat, i am so heavily invested into 1st reits, oue comm reits and oue, loss 50%

 

Lippo mall, lippo karawaci, oue healthcare, first reit, oue commercial, all same...... see share price, down down down n no up. Can google the relationship of these companies. But then oue commercial seems doing better than the rest. First reit was doing well also until one fine day......

 

Sponsor for OUE CREIT is OUE who is also the joint sponsor for First REIT but they are not sponsor to Lippo.

One other key thing is probably given the exclusion from MSCI, many insti funds wouldnt want to own it, not to mention the liquidity and free float. Valuations however look very compelling for the portfolio, assuming everything is fine with the business fundamentals...
 

luckyguy3      ( Date: 16-Sep-2023 23:03) Posted: This type is scary becos ALL OF US know the assets it have is good assets but the share price keeping dropping and dropping means there must be something wrong with the reits? if not who the hell is throwing and throwing every single day?. Cannot be substantial shareholders throwing becos if that is the case, they have to declare but no declaration up to now but everyday MANY MANY selling going on.. AND the most important factor is the sponsor is the also sponser of Lippo and First reit, both of these 2 reits u should know the history. There must be something very wrong if not cannot be EVERY SINGLE DAY got ppl dump and dump ... n3wbie      ( Date: 16-Sep-2023 22:47) Posted: Havent quite seen this stock trade at 10% yield - value trap or an opportunity? They have a good portfolio of quality assets though - can imagine with F1, their hotels with Hilton and Crown Plaza should both benefit from the high revpar. Their commercial assets also have occupancy in excess of 95% mostly except for one small asset in Shanghai.

 

This type is scary becos ALL OF US know the assets it have is good assets but the share price keeping dropping and dropping means there must be something wrong with the reits? if not who the hell is throwing and throwing every single day?. Cannot be substantial shareholders throwing becos if that is the case, they have to declare but no declaration up to now but everyday MANY MANY selling going on..

AND the most important factor is the sponsor is the also sponser of Lippo and First reit, both of these 2 reits u should know the history.

There must be something very wrong if not cannot be EVERY SINGLE DAY got ppl dump and dump ...

n3wbie      ( Date: 16-Sep-2023 22:47) Posted: Havent quite seen this stock trade at 10% yield - value trap or an opportunity? They have a good portfolio of quality assets though - can imagine with F1, their hotels with Hilton and Crown Plaza should both benefit from the high revpar. Their commercial assets also have occupancy in excess of 95% mostly except for one small asset in Shanghai.