{"id":81070,"date":"2025-11-14T10:02:20","date_gmt":"2025-11-14T02:02:20","guid":{"rendered":"https:\/\/www.kgieworld.sg\/research\/?p=81070"},"modified":"2025-11-19T11:26:16","modified_gmt":"2025-11-19T03:26:16","slug":"company-report-oue-reit-ouereit-sp-ts0u-si","status":"publish","type":"post","link":"https:\/\/www.kgieworld.sg\/research\/company-report-oue-reit-ouereit-sp-ts0u-si\/","title":{"rendered":"Company Report: OUE REIT (OUEREIT SP\/TS0U.SI)"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Company Update: <em>14 November 202<\/em>5<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><strong>Steady Core, Cheaper Debt<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CBD office strength holds. <\/strong>OUE REIT\u2019s office portfolio remained robust with committed occupancy at 95.3% as of 30 September 2025. Average passing rent rose 0.5% QoQ to S$10.91 psf\/month, while rental reversion for 3Q25 rose 9.3%, continuing to outpace Core CBD Grade A rent growth of 0.8% QoQ according to CBRE. Positive tenant retention and flight-to-quality demand remain key contributors to stability.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Strong Financial Footing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Aggregate leverage stood at 40.9%, slightly up from 40.3% in 2Q25, while the weighted average cost of debt fell 10bps QoQ to 4.1%. Finance costs declined 19.7% YoY on the back of proactive refinancing and lower SORA. Interest coverage improved to 2.3x, and 66.7% of debt remains hedged. Following the issuance of S$150mn 7-year Green Notes at 2.75%, debt maturity has been extended to 3.3 years on a pro forma basis.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Management Fee Structure<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">OUE REIT continues to pay 50% of base management fees in cash and 50% in units, aligning management interests with unitholders while conserving cash for reinvestment and capital flexibility.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Valuation & Action<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We maintain <strong>OUTPERFORM<\/strong> with a target price of <strong>S$0.36<\/strong>, based on a Dividend Discount Model (DDM) assuming an 8.1% cost of equity and 2.0% terminal growth. OUE REIT\u2019s fully Singapore-centric, prime-weighted portfolio with improving funding costs and optionality from capital recycling supports stable yield and total return upside.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 20px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-white-color has-text-color has-background\" style=\"background-color:#012169\">Risks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Macroeconomic uncertainties, asset concentration, interest rate reversal and slower-than-expected recovery in discretionary travel demand.<\/p>\n\n\n\n<div class=\"wp-block-spacer\" style=\"height: 25px;\" aria-hidden=\"true\">\u00a0<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-luminous-vivid-orange-background-color has-background wp-element-button\" href=\"https:\/\/www.kgieworld.sg\/securities\/resources\/ck\/files\/docs\/research\/OUE%20REIT%203Q25%20UPDATE.pdf\">Read Full Report<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/t.me\/kgisg\"><img fetchpriority=\"high\" decoding=\"async\" width=\"760\" height=\"208\" src=\"https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2021\/04\/subscribegif.gif\" alt=\"Subscribe Now\" class=\"wp-image-3937\"\/><\/a><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBD office strength holds. OUE REIT\u2019s office portfolio remained robust with committed occupancy at 95.3% as of 30 September 2025. Average passing rent rose 0.5% QoQ to S$10.91 psf\/month, while rental reversion for 3Q25 rose 9.3%, continuing to outpace Core CBD Grade A rent growth of 0.8% QoQ according to CBRE. Positive tenant retention and flight-to-quality demand remain key contributors to stability.<\/p>\n","protected":false},"author":17,"featured_media":81300,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-81070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"uagb_featured_image_src":{"full":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-scaled.png?wsr",2560,888,false],"thumbnail":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-150x150.png?wsr",150,150,true],"medium":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-300x104.png?wsr",300,104,true],"medium_large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-768x266.png?wsr",768,266,true],"large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-1024x355.png?wsr",800,277,true],"1536x1536":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-1536x533.png?wsr",1536,533,true],"2048x2048":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/OUE-REIT-OUEREIT-SP-Logo-2048x710.png?wsr",2048,710,true]},"uagb_author_info":{"display_name":"Enya Tan","author_link":"https:\/\/www.kgieworld.sg\/research\/author\/enya-tankgi-com\/"},"uagb_comment_info":0,"uagb_excerpt":"CBD office strength holds. OUE REIT\u2019s office portfolio remained robust with committed occupancy at 95.3% as of 30 September 2025. Average passing rent rose 0.5% QoQ to S$10.91 psf\/month, while rental reversion for 3Q25 rose 9.3%, continuing to outpace Core CBD Grade A rent growth of 0.8% QoQ according to CBRE. Positive tenant retention and&hellip;","_links":{"self":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/comments?post=81070"}],"version-history":[{"count":2,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81070\/revisions"}],"predecessor-version":[{"id":81301,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81070\/revisions\/81301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media\/81300"}],"wp:attachment":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media?parent=81070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/categories?post=81070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/tags?post=81070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}