OCBC released a note on OUE Hospitality Trust (OUEHT) indicating a hold on the counter despite 2018 anticipated to be a positive year for the stock.

Average cost of debt has fallen from 2.8% to 2.4% after the trustee of OUEHT entered into a facility agreement with four banks for revolving loan facilities amounting to S$980m.

Subsequently on 19 Dec 2017, they drew down from the facility to refinance S$859m of outstanding debts.

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After refinancing, more than 70% of OUEHT’s interest is fixed via interest rate swaps and the weighted average maturity has risen from 1.3 to more than 3.7 years.

Income available for distribution is expected to rise 4.8% to S$99.1m in 2018, up from S$94.5m in 2017.

Investment properties are forecasted to be stable at S$2.3b as OCBC does not see OUEHT making any acquisitions in the year…