In Guha’s view, OUE REIT is “too cheap to ignore”. At its last-traded unit price of 29 cents, OUE REIT is the “most inexpensive Singapore-centric commercial S-REIT”, says the analyst in his July 15 report.
Maybank Securities analyst Krishna Guha has initiated a “buy” call on OUE (SGX:LJ3
) REIT with a target price of 30 cents. His target price is based on a cost of equity of 7.4% and medium-term growth rate of 2%, implying total return of 20%.
The REIT is one of the largest diversified Singapore REITs (S-REITs) with total assets under management (AUM) of $6.3 billion as at the end of FY2023 ended Dec 31, 2023. The REIT currently owns hotels, offices and a mall in Singapore and another in Shanghai comprising 1,655 hotel keys and 2.2 million sq ft of prime office and retail space.
