In a Tuesday report, lead analyst Joseph Ng says he does not think valuations are particularly cheap at this juncture with the recent jump in OUE CT’s unit price of 4.2% on a year to date (YTD) basis. This has led to compression of the trust’s 12-month blended forward consensus dividend yield to about 6.4% – which is close to two standard deviations below the three-year mean, he notes.
SINGAPORE (Jan 9): OCBC Investment Research is maintaining its “hold” call on OUE Commercial REIT (OUE CT) with a fair value estimate of 67 cents, close to one standard deviation above the three-year historical mean.
This comes in spite of robust office sector sentiments which the research house sees extending into 2018.
