OUE Hospitality Trust - OCBC Investment 2017-07-10: Trading At 6.4% Forward Yield

OUE Hospitality Trust - OCBC Investment 2017-07-10: Trading At 6.4% Forward Yield OUE HOSPITALITY TRUST SK7.SI

OUE Hospitality Trust - Trading At 6.4% Forward Yield

  • According to Changi Airport Group (CAG) traffic numbers, passenger movements were up +4.6% YoY in May, and up +5.3% YoY for the Jan-May period. Changi Airport will see the first commercial flights use Terminal 4 in the coming weeks, as part of the final phases of trials ahead of the new terminal's official opening. 
  • We also note that luxury skincare line Cle de Peau Beaute has opened its 1,012 sq ft flagship store at Mandarin Gallery; taking up previously unoccupied space at the mall. 
  • We remain positive on the medium-term impact of Terminal 4’s opening for OUE Hospitality Trust’s (OUEHT) Crowne Plaza Changi Airport, as well as the prospect for a sustained improvement in contributions from Mandarin Gallery. 
  • OUEHT is currently trading at 6.4% forward yield and we find it the most attractive REIT in the hospitality sub-sector
  • Maintain BUY on OUEHT with a fair value of S$0.75.




Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2017-07-10
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 0.750 Same 0.750



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