As I write, on 15 December 2018, OUE Hospitality Trust (OUE H-Trust) is trading at S$ 0.68 per unit, the lowest since its IPO listing in 2013.

Source: Google Finance

Evidently, it crashed as the stock price has tumbled from S$ 0.89 in January 2018 to its lowest currently. Similar price patterns have occurred on other REITs related to the Riady Family namely: OUE Commercial REIT, Lippo Malls Indonesia Retail Trust, and First REIT. It seems that they are affected by the downgrade in credit ratings of Lippo Karawaci, a leading property conglomerate in Indonesia.

So, should we dismiss an investment into OUE H-Trust? Or, is it a bargain which is to be capitalised when the market is ‘running away’ from anything related to Lippo, OUE, and the Riady Family?

Well, the answer is a Yes if you are paranoidly concerned about the strength of a sponsor and ...