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PHILLIP SECURITIES |
UOB KAYHIAN |
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OUE REIT Prime CBD commercial assets drive performance
• 2H25/FY25 DPU of 1.25/2.23 Singapore cents rose 10.6%/8.3% YoY, beating our expectations and representing 62.5%/111.5% of our FY25e forecast. The outperformance was driven by a 21% YoY decline in FY25 finance costs, stronger operational performance in the commercial segment, as well as a 49.3% YoY increase in joint venture contributions.
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REITs S-REITs Monthly Update (Jan 26)
Highlights • S-REITs would be active in asset recycling in 2026, supported by depressed domestic interest rates. M&A activities could be a positive surprise. • Maintain OVERWEIGHT. BUY blue-chip S-REITs: FLT (Target: S$1.22), LREIT (Target: S$0.81), MPACT (Target: S$1.84) and NTTDCR (Target: S$1.42).
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UOB KAYHIAN |
UOB KAYHIAN |
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CapitaLand Ascott Trust (CLAS SP) 2H25: Portfolio RevPAU Maintained Upward Trajectory
Highlights • Portfolio RevPAU increased 2% yoy to S$180 in 4Q25 as occupancy improved 2ppt yoy to 83%. Portfolio valuation increased 1.7% or S$130m with revaluation gains from Japan, France and Australia. • Management would consider drastic measures, such as replacing the property managers, to arrest the decline in student accommodation assets. 90% of tenants are local students from reputable universities. • Maintain BUY. Target price: S$1.42.
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Singapore Airlines (SIA SP) 3QFY26 Results Preview: Core Earnings To Bottom Out qoq; Improved FY26 Earnings Outlook On Pax Yield Stabilisation
Highlights • SIA’s 3QFY26 operating statistics came in in line with our expectations, with pax load and cargo load rising 3.2% and 1.1% yoy, respectively. • Pax yields are expected to stabilise yoy, backed by healthy pax load factors in the year-end peak travel season, while cargo yields are expected to still moderate yoy, driven by cargo flow shifts caused by the US tariff policies.
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| LIM & TAN | LIM & TAN |
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Parkway Life REIT ($4.07, down 1 cent) reported that for FY25, while distributable income to Unitholders rose 9.1% year-on-year (“YoY”), PLife REIT achieved a DPU of 15.29 cents, representi ng a 2.5% increase due to enlarged unit base Operating performance strengthened over the year. Gross Revenue for FY 2025 increased 7.6% YoY to S$156.3 million while Net Property Income rose 8.0% YoY to S$147.5 million. The improvement largely reflects higher contributions from assets acquired in 2024 as well as organic rental growth from the Singapore hospital portfolio with step-up lease agreements, partially offset by foreign currency movements, which remain well managed through the Group’s established hedging strategies. Plife REIT’s market cap stands at S$2.7bln and currently trades at 1.7x PB, with a dividend yield of 3.8%. Consensus target price stands at S$4.80, representing 17.9% upside from current share price. While we continue to like PLife REIT’s strong fundamentals, steady returns and robust visibility going forward, valuations are rather fair and thus we maintain an “Accumulate On Weakness” rating on Plife REIT.
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CDL Hospitality Trusts / CDLHT (S$0.875, up 1 ct) has announced its results for the six months (“2H 2025”) and full year (“FY 2025”) ended 31 December 2025. For 2H 2025, gross revenue increased by 7.2% year-on-year (“yoy”) to S$142.5 million. This growth was supported by stronger contributions from the Singapore, Australia, New Zealand, Japan and UK portf olios. The UK portfolio continued to benefit from inorganic contributions from The Castings, Benson Yard, and Hotel Indigo Exeter, which helped mitigate softer trading conditions in other regions. Overall, NPI rose by 3.5% yoy to S$71.1 million for the period, with performance partially affected by ongoing room renovation works at W Hotel and Grand Millennium Auckland. Excluding these assets, NPI growth would have improved by 6.3% yoy. CDLHT’s market cap stands at S$1.1bln and currently trades at 0.6x PB, with a dividend yield of 5.5%. Consensus target price stands at S$0.88, representing 0.6% upside from current share price. Given limited upside to share price, we continue to maintain a HOLD on CDLHT. |
