Analysts raised OUE REIT TP following 3Q Business Updates

Following our resilient 3Q 2025 performance, we’re encouraged to see our covering analysts reaffirm their confidence in $华联房地产投资信托(TS0U.SI)$ OUE REIT’s outlook in their latest reports.

• [微笑]Maybank upgraded OUE REIT to “BUY”, raised its target price to S$0.38, and revised FY25/26 DPU forecasts +2% / +0.5%, reflecting improved hotel margins and lower borrowing costs.

• [微笑]DBS Bank lifted its target price to S$0.40 (previously S$0.35) and increased FY25/26 DPU estimates +2% / +7%, citing stronger interest savings.

• [微笑]CGS International Securities Singapore International reiterated its “ADD” rating with target price remaining unchanged at S$0.38. FY25/26/27 DPU forecasts increased by +2.8% / +6.2% / +5.9%, factoring in lower finance costs and better operating margins.

• [微笑]OCBC raised its target price to S$0.36 from S$0.345 and increased FY26 DPU projections by 1% on expected financing cost reductions.

• [微笑]Beansprout increased its target price to S$0.36 (previously S$0.32), noting potential DPU uplift from continued interest rate declines.

Analysts highlighted OUE REIT’s high interest savings, robust commercial performance and improved outlook for the hospitality segment. The commercial segment remains strong, with tight supply offsetting slower leasing momentum and driving rental growth.

Key takeaways:

Riding the interest rate tailwinds

[强]3Q 2025 finance costs declined by 19.7% YoY, further benefitting from the lower interest rate environment

[强] Anticipate further cost savings ahead, supported by refinancing opportunities on its high-cost loans and expiring interest rate swaps

Stable commercial operating performance

[强] Strong commercial segment performance with 3Q 2025 revenue and NPI increasing 4.2% YoY and 3.8% YoY respectively on a like-for-like basis

[强] Office portfolio committed occupancy largely stable at 95.3%, with positive rental reversion sustained at 9.3%Better-than-expected performance from the hospitality segment

[强] Excluding the timing shift of the F1 Singapore Grand Prix, 3Q 2025 RevPAR performance would have been largely flattish YoY

[强] Cautiously optimistic of a firmer set of performance in 4Q 2025, given a more exciting calendar of events

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