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OUE REIT – Singapore office continues to shine
By Beansprout  •  October 27, 2024

OUE REIT provided 9M24 operational performance update, which was in line with our expectations.

Revenue and net property income were 75% and 73% of our FY24E estimates. 3Q24 revenue fell 1.3% year-on-year on lower contribution from the hotels.  Net property income fell 3.7% due to upward revision of prior years’ property tax for the two hotels. Excluding this, NPI was 1.2% lower. Source: Company data, Beansprout research

Singapore office is the bright spot

Occupancy rate rose 0.2%-point quarter-on-quarter to 95.4%, compared with 1.7%-point decline to 92.2% for core CBD area.  Rental reversions stayed elevated at 10.8% during 3Q24, through lower than 11.7% in 2Q24 and 12.6% in 1Q24.  With more supply coming onstream, office rental growth is expected to slow.  We expect a higher single-digit growth rate for OUE REIT as the expiring rent for 2004-2006 are still 14%-19% below current market rent of S$11.95 for Grade A office....
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By Beansprout
Hi, I’m Gerald! I have been working in investment analysis for more than 12 years. Often, I encounter everyday investors who find it difficult to invest. At Beansprout, we believe that with the right tools and knowledge, everyone can be an investor. Hence, we founded Beansprout to make quality investment insights more accessible. We hope that you can join us on this journey to grow your financial knowledge and confidence as an investor.
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