OUE Ltd

SGX (SGD): OUE (LJ3)

Last Price

1.02

Today's Change

0.00 (0.00%)

Day's Change

1.02 - 1.02

Trading Volume

1,100

Overview

Avg Volume (4 weeks)

43,328

4 Weeks Range

1.01 - 1.04

4 Weeks Price Volatility (%)

33.33%

52 Weeks Range

1.00 - 1.24

52 Weeks Price Volatility (%)

8.33%

Previous Close

1.02

Open

1.02

Bid

1.02 x 1,500

Ask

1.03 x 18,600

Day's Range

1.02 - 1.02

Trading Volume

1,100

Company Profile

Sector: Accommodation and Food Service Activities

Sector: Accommodation and Food Service Activities

Description:

OUE Limited is a Singapore-based real estate development, investment and management company. The principal activities of the Company include hospitality services, property investment and investment holding. The Company's segments include Investment properties (Singapore, United States of America and the PRC), which is a rental of investment properties owned by the Company and management of real estate investment trusts; Hospitality, which includes the operation of hotels and hotel management; Development properties (Singapore and the PRC), which is the sale of residential properties and other properties under development; Healthcare, which includes the operation of investment holding, development of the medical real estate, healthcare-related assets and integrated mixed-use developments and provision of healthcare services and management of healthcare investments trusts, and Consumer, which includes the operation of food and beverage outlets and consumer-related investments.

Discussions
1 person likes this. Showing 1 of 2 comments

Lansford Loo

NAV per share of OUE C-REIT: $1.02 (unaudited Dec 2013)
Issue Price: $0.80 (discount of 21.8%)
Loss to sponsor, OUE on per share basis: -$0.10

Essentially, OUE trying to sell apart of their assets to the market cheaply. Thus this is the key reason why OUE drops.

So why did OUE C-REIT drop?
Reason why investors would buy REIT? For stable yields. Lets look at the yield quality of OUE C-REIT:
1. REIT manager: OUE. Can OUE get more properties for the REIT at discounted prices or get more yield accretive properties to justify the 0.3% base management fee + 25% performance fee?
2. Can OUE C-REIT sustain the 6.8% yield they claimed on the front page of the prospectus?
(see pg 42) without income support the yield drops to 5.56%
(see pg 85) net income S$32, but pay S$47m in distribution using unit-holder contributions? what you pay for, they just return it straight to you? [note: stable yield prob only 2-3%]
stabilizing manager? or price support manager? c.5% of the units can be utilized in stabilization.

looks like if you're participating the IPO, you are banking on the work of the stabilizing manager.


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2014-01-28 08:34

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