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