“We believe the market’s likely concerns about its sponsor’s issuance of EBs is unwarranted, as it would have no material impact on its underlying distribution per unit (DPU),” says analyst Vijay Natarajan in a report on Tuesday.
SINGAPORE (Apr 4): RHB Research is keeping OUE Hospitality Trust as its top pick among hospitality REITs in spite of concerns over sponsor OUE’s proposed issuance of exchangeable bonds (EB), which has sparked a 7% fall in OUE H-Trust’s share price over the past month.
OUE last month proposed to issue $150 million exchangeable bonds due 2023, which bear interest at 3% per annum. These will be exchangeable into OUE H-Trust units at 95.7 cents each.
