OUE REIT Bull Upbeat on Hotel Sale's Potential to Boost Dividends

Dow Jones
Jun 25

0901 GMT - OUE Real Estate Investment Trust's move to sell its airport hotel to its sponsor could eventually lead to stronger dividends, if the trust continues to unlock more value from its assets, DBS Group Research's Tabitha Foo says in a note. The sale comes before the expiry of its master lease and hotel-management agreement, which could have resulted in OUE REIT facing significant capital-expenditure requirements, the analyst says. The exit price was also close to its book value, suggesting DBS's assessed net asset value for the REIT is achievable. However, she flags that the REIT could be taken private if another of its sizable assets in Singapore is sold. DBS maintains its buy rating and S$0.45 target price. Units rise 1.4% to S$0.36. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

June 25, 2026 05:01 ET (09:01 GMT)

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