FY18-FY19 are transition years with flattish DPU given the loss of income support, impact from higher borrowing costs, and Crown Plaza Changi Airport still taking time to ramp up. This combined with fears over a rights issue similar to that done by its sister REIT, OUE Commercial REIT, caused OUEHT’s share price to correct over the last 6-9 months, says DBS.
SINGAPORE (Jan 31): OUE Hospitality Trust (OUEHT), trading at 10% discount to book, should re-rate from its current levels after the 2H18 correction as the hospitality industry is in the midst of a multi-year recovery, says DBS Group Research.
