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Following the release of our resilient 1H2025 results, we are grateful that our covering analysts have reaffirmed their confidence in OUE REIT’s performance and outlook in their latest reports. Three houses have increased their target prices and FY DPU forecasts, while the rest have maintained their “BUY” ratings [胜利]

• DBS Bank has kept its “BUY” call on OUE REIT with a higher target price of S$0.350 (vs S$0.33 previously) and raised FY25/26 DPU forecasts by 5%-6% on stronger-than-expected operating metrics for the commercial portfolio and higher interest savings

• OCBC reiterated “BUY” rating with a raised target price to S$0.335 and increased FY25 DPU forecasts by 6.2%

• Maybank increased target price to S$0.300 and lifted FY25/26 DPU forecasts on back of better commercial margins

• CGS International Securities Singapore, PhillipCapital, Beansprout and Lim & Tan Securities have maintained their “BUY” or “ADD” ratings

Analysts highlighted OUE REIT’s high interest savings and strong commercial performance, which boosted DPU. The commercial segment, supported by robust leasing momentum, high occupancies and positive rental reversions, continues to be a strong pillar for the REIT.

Key takeaways:

𝐇𝐢𝐠𝐡𝐞𝐫 𝐃𝐏𝐔 𝐟𝐫𝐨𝐦 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭

• 1H 2025 DPU of 0.98 cents (+5.4% YoY) was largely in line with analysts’ forecast

• 1H 2025 financing costs declined significantly by 17.3% YoY

𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐭 𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐚𝐛𝐨𝐯𝐞 𝐞𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬

• Strong commercial segment performance with 1H 2025 revenue and NPI increasing 3.6% YoY and 5.1% YoY respectively on a same-store basis

• Office portfolio outperformed and 2Q 2025 rental reversion of 9.1% held up above the mid-single-digit guidance

• Leasing momentum in the office segment remains robust

• New retail concepts continue to drive Mandarin Gallery’s footfall

Read more:

[你懂的] The Edge “Analysts raise OUE REIT’s target price on interest cost savings but warn of ‘hotel headwinds’” https://lnkd.in/gQ7K5NZw

❓Want to learn more about OUE REIT’s prime Singapore-centric portfolio❓Join our CEO, Mr Han Khim Siew next Tuesday (19 August) at The Edge Singapore’s REITs Investment Forum from 7pm to 9pm. Registration is still open – secure your spot here: https://lnkd.in/g6dbuCsN

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