Foo believes that this divestment is aligned with her value unlocking thesis on OUE REIT. “If further value unlocking is seen, investors will likely be looking at further dividends to be rewarded for the rise in asset values,” Foo predicts.
Analysts from DBS Group Research, Maybank Securities and OCBC Group Research remain positive on OUE REIT (SGX:TS0U
) following the recent announcement on the proposed divestment of Crowne Plaza Changi Airport for $500 million.
Tabitha Foo of DBS Group Research feels that this divestment is a positive development for the REIT given the upcoming hotel management agreement and master lease expiry in 2028. “OUE REIT would likely face significant refurbishment capex, potential rebranding costs, operational downtime and the loss of minimum rent protection,” Foo says.
