To The Moon

Technical Analysis (TA) $OUEREIT(TS0U.SI)$

The provided chart indicates a significant shift in price action over the past year:

• Bullish Reversal & Channel: After bottoming near $0.215 in late 2023, the stock established a clear ascending parallel channel.

• Moving Averages: The price is currently trading above the 20-day (blue), 50-day (magenta), and 200-day (green) moving averages. The 20-day recently crossed above the others, signaling short-term bullish momentum.

• Key Resistance & Support:

• Resistance: Immediate resistance is at $0.375 - $0.380 (52-week high). A breakout here could target the consensus analyst mark of $0.44 - $0.45.

• Support: Strong support is found at the $0.315 horizontal line and the lower boundary of the current uptrend channel.

Fundamental Analysis (FA)

OUE REIT delivered a resilient 1Q 2026, characterized by robust rental reversions and effective capital management:

• Financial Growth: Revenue rose 6.7% YoY to $70.5 million, while Net Property Income (NPI) grew 8.4% YoY to $57.6 million.

• Sector Performance:

• Hospitality: This was the standout segment, with NPI surging 16.8% YoY. RevPAR reached $277, driven by high-profile events and the return of major MICE activities like the Singapore Airshow.

• Commercial: Achieved positive rental reversions of 6.0% in the Singapore office portfolio, maintaining a high occupancy rate of 95.2%.

• Valuation & Yield:

• The REIT is trading at a significant 21% discount to book value (P/NAV of approximately 0.65x).

• The forecast dividend yield for FY26 is approximately 6.7%, expected to rise to 7.4% by FY28.

• Debt Profile: Weighted average cost of debt decreased to 3.7% p.a., with aggregate leverage standing at 41.5%.

Future Plan & Strategy

Management is pivoting toward capital recycling and organic growth:

• Strategic Divestment: OUE REIT is in the "price discovery phase" for the potential divestment of its stake in One Raffles Place (valued at $1.93 billion). Proceeds are earmarked for debt reduction (targeting a gearing of ~37%) and new acquisitions.

• Geographic Diversification: Completed the acquisition of a 19.9% stake in Salesforce Tower (Sydney) in March 2026. This marks a strategic entry into the Australian market with an initial yield of ~5.8%.

• Asset Enhancement Initiatives (AEI):

• OUE Bayfront: Planning approval has been received to convert Level 17 into 22,600 sq ft of additional office space. This project is expected to deliver a stabilized ROI of over 11.0%.

• Sustainable Hospitality: OUE Limited (Sponsor) is developing Hotel Indigo Changi Airport, aiming to be Singapore's first zero-energy hotel, which could eventually be a pipeline asset for the REIT.

Kenny Loh is a distinguished MAS Private Wealth Advisor (RNF: LKK300389588) representing Financial Alliance with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

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