OUE Commercial Real Estate Investment Trust (TS0U) AI Stock Analysis

• Market Cap: S$1.90B
• Dividend Yield: 6.03%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -11.65%
• EPS Growth: -137.98%
• Country: SG
• Employees: 66
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): N/A
• Shares Outstanding: 5,519,345,000
• 10 Day Avg. Volume: 2,857,760
• 30 Day Avg. Volume: 2,865,621
• PEG Ratio: 0.17
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 5.30
• P/FCF Ratio: 8.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.40
• Price Target Upside: 14.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: S$0.50 ▲(42.86% Upside)

The overall stock score of 56 reflects mixed financial performance with declining revenue and negative profitability. Technical analysis indicates neutral momentum, while valuation is challenged by a negative P/E ratio but supported by a high dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Resilient Operational Performance

The company's ability to maintain resilient performance despite revenue declines indicates strong operational management and adaptability, crucial for long-term stability.

Green Financing Initiatives

The focus on green financing enhances sustainability credentials and aligns with global ESG trends, potentially improving market positioning and investor appeal.

Reduced Finance Costs

Lower finance costs improve cash flow and profitability, providing more resources for strategic investments and growth opportunities.

Negative Factors

Declining Revenue

A consistent decline in revenue can weaken financial health and limit the ability to invest in growth, posing long-term challenges for the business.

Negative Profitability

Sustained negative profitability undermines financial stability and reduces the capacity to reinvest in business operations, impacting future growth.

Minimal Cash Flow Growth

Limited growth in cash flow restricts financial flexibility and the ability to respond to market opportunities or challenges, affecting long-term resilience.

OUE Commercial Real Estate Investment Trust Business Overview & Revenue Model

Company Description

OUE Commercial Real Estate Investment Trust (TS0U) is a Singapore-based Real Estate Investment Trust (REIT) that primarily focuses on investing in income-generating commercial properties. The trust's portfolio consists of a diverse range of properties, including office buildings, retail spaces, and hospitality assets, primarily located in key urban areas. OUE C-REIT aims to provide sustainable returns to its unitholders through a strategic acquisition strategy and active asset management, catering to the growing demand for commercial spaces in the region.

How the Company Makes Money

OUE Commercial Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of properties. The REIT leases out office spaces, retail outlets, and hotel rooms, benefitting from long-term lease agreements and high occupancy rates. Additionally, the trust may earn income through property management services and ancillary services related to its properties. OUE C-REIT's revenue model is bolstered by its strategic partnerships with property management firms and tenants, allowing it to maintain stable cash flows and optimize property performance. Furthermore, the trust may engage in strategic acquisitions of new properties, enhancing its portfolio and potential revenue streams.

OUE Commercial Real Estate Investment Trust Financial Statement Overview

Summary

The financial performance is mixed, with declining revenue and negative profitability. The income statement shows a negative net profit margin of -23.71%, despite strong gross profit margins. The balance sheet is stable with moderate leverage but lacks profitability, and cash flow management is efficient but shows minimal growth.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -2.16% in the TTM. The company has a negative net profit margin of -23.71%, indicating a loss-making position. However, the gross profit margin remains strong at 76.46%, and EBIT and EBITDA margins are healthy at 76.15% and 76.17%, respectively. The declining revenue and negative net income are significant concerns.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.64, indicating manageable leverage. However, the return on equity is negative at -2.19%, reflecting the company's inability to generate profit from its equity base. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures. Overall, the balance sheet shows stability but lacks profitability.

Cash Flow

The cash flow statement indicates a slight growth in free cash flow at 0.53% in the TTM. The operating cash flow to net income ratio is 0.70, and the free cash flow to net income ratio is nearly 1, suggesting efficient cash flow management despite negative net income. However, the growth in free cash flow is minimal, and the overall cash flow position is stable but not strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	312.23M	295.52M	285.06M	241.51M	249.88M	292.01M
Gross Profit	238.73M	216.98M	217.31M	180.16M	184.65M	212.18M
EBITDA	237.82M	209.10M	296.19M	369.79M	139.01M	39.80M
Net Income	-74.02M	-68.32M	200.11M	275.57M	38.88M	-36.27M
Balance Sheet
Total Assets	5.94B	5.94B	6.07B	5.99B	5.83B	6.77B
Cash, Cash Equivalents and Short-Term Investments	355.76M	361.67M	54.23M	49.48M	59.55M	88.51M
Total Debt	2.15B	2.12B	2.08B	2.07B	2.01B	2.72B
Total Liabilities	2.32B	2.28B	2.29B	2.28B	2.24B	2.99B
Stockholders Equity	3.36B	3.40B	3.52B	3.45B	3.34B	3.54B
Cash Flow
Free Cash Flow	200.28M	176.54M	202.78M	135.73M	109.90M	226.56M
Operating Cash Flow	200.29M	200.62M	213.39M	183.53M	166.80M	234.36M
Investing Cash Flow	283.50M	287.72M	1.46M	-30.85M	902.52M	-7.00M
Financing Cash Flow	-174.79M	-180.40M	-208.94M	-159.12M	-1.10B	-200.50M

OUE Commercial Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:TS0U, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:TS0U.

OUE Commercial Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A26	74 Outperform	―	―	―	―	11.38%	-10.78%
BUOU	72 Outperform	$3.73B	18.11	4.77%	6.10%	2.01%	38.17%
H13	69 Neutral	S$1.43B	9.52	4.10%	1.85%	-8.06%	―
F17	67 Neutral	€2.24B	23.96	2.22%	3.48%	4.58%	-14.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
TS0U	56 Neutral	S$1.90B	-24.82	-2.15%	6.03%	-11.65%	-137.98%
9A4U	56 Neutral	$2.23B	-19.48	-4.88%	7.74%	10.51%	-40.93%

OUE Commercial Real Estate Investment Trust Corporate Events

OUE REIT Issues New Units as Base Fee Payment

OUE REIT Management Pte. Ltd. has issued 5,722,544 new units in OUE Real Estate Investment Trust at an issue price of S$0.3454 per unit. These units were issued as part of the payment for the base fee for the third quarter of 2025 and will be sold to OUE Limited. This issuance increases the total number of units to 5,519,345,062, potentially impacting the market dynamics and investor perceptions of OUE REIT.

OUE REIT Reports Resilient Performance and Reduced Finance Costs in Q3 2025

OUE REIT reported a resilient operational performance for the third quarter of 2025, with a notable 19.7% year-on-year decline in finance costs. Despite a decrease in overall revenue and net property income due to the divestment of Lippo Plaza Shanghai, the company saw a like-for-like increase in revenue and NPI by 1.2% and 2.0% respectively, driven by its Singapore-centric portfolio. The commercial segment showed strong growth, while the hospitality segment remained stable despite the rescheduling of the F1 Singapore Grand Prix. The company continues to focus on optimizing asset performance and exploring value-creation opportunities.

OUE Commercial REIT Issues S$150 Million Green Notes

OUE Commercial Real Estate Investment Trust has issued S$150 million in 2.75% Green Notes due 2032 under its S$2 billion Euro Medium Term Note Programme. The issuance, managed by Oversea-Chinese Banking Corporation Limited and DBS Bank Ltd., aims to list the Notes on the Singapore Exchange Securities Trading Limited and is expected to be recognized under the SGX Sustainable Fixed Income initiative. This move aligns with the trust’s strategy to enhance its financial flexibility and sustainability credentials, potentially impacting its market positioning positively.

OUE REIT to Release Q3 2025 Business Updates

OUE REIT Management Pte. Ltd. announced that the business updates for OUE Real Estate Investment Trust for the third quarter ending on September 30, 2025, will be released after trading hours on October 23, 2025. This announcement may impact stakeholders by providing insights into the company’s financial performance and market positioning, although it also highlights the inherent risks and lack of guaranteed returns associated with investing in the trust.

OUE REIT Launches S$500 Million Commercial Paper Programme

OUE REIT has announced the establishment of a S$500,000,000 Commercial Paper Programme, allowing the issuance of fixed or floating rate notes with tenors of up to 364 days. This initiative, arranged by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, aims to enhance liquidity and flexibility in financing, potentially strengthening OUE REIT’s market position and offering new investment opportunities to stakeholders.

OUE REIT Secures Four-Star GRESB Rating, Advances ESG Initiatives

OUE REIT has achieved a four-star rating in the 2025 Global Real Estate Sustainability Benchmark (GRESB) assessment for the second consecutive year, with an improved score of 85 points. This accomplishment underscores the company’s dedication to environmental, social, and governance (ESG) standards, with 95.4% of its portfolio being green-certified. OUE Bayfront has initiated a Net Zero transition plan, and the company has aligned its financing activities with sustainability goals, securing a S$600 million green loan and issuing S$150 million in Investment Grade Green Notes.

OUE REIT Prices S$150 Million Green Notes for Sustainable Projects

OUE REIT has announced the pricing of its S$150 million 2.75% Green Notes due 2032 under its S$2 billion Euro Medium Term Note Programme. The issuance, guaranteed by DBS Trustee Limited, is aimed at financing or refinancing eligible green projects, aligning with international green finance standards. Oversea-Chinese Banking Corporation Limited and DBS Bank Ltd. are leading the offering, with the Notes expected to be listed on the Singapore Exchange. This move underscores OUE REIT’s commitment to sustainable investment practices and strengthens its position in the green finance market.