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

• Market Cap: S$1.76B
• Dividend Yield: 6.49%
• Average Volume (3M): 3.63M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.67
• Revenue Growth: -11.65%
• EPS Growth: -137.98%
• Country: SG
• Employees: 66
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Office
• EPS (TTM): 0.01
• Shares Outstanding: 5,513,622,600
• 10 Day Avg. Volume: 4,223,240
• 30 Day Avg. Volume: 3,633,630
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$0.43
• Price Target Upside: 34.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: S$0.50 ▲(56.25% Upside)

OUE Commercial REIT's overall stock score is driven primarily by financial performance and technical analysis. The stock shows bullish technical momentum, but financial challenges with profitability and a negative P/E ratio weigh heavily. The strong dividend yield offers some compensation, but potential investors should be cautious of leverage risks and profitability issues.

OUE Commercial Real Estate Investment Trust Business Overview & Revenue Model

Company Description

OUE Commercial Real Estate Investment Trust (OUE C-REIT) is a Singapore-based real estate investment trust that primarily invests in income-producing commercial properties. With a strategic focus on high-quality office and retail spaces, OUE C-REIT manages a diverse portfolio of properties located in prime business districts in Singapore and beyond. The trust aims to generate stable cash flows and long-term capital growth for its investors through astute property management and acquisitions.

How the Company Makes Money

OUE C-REIT makes money primarily through leasing its portfolio of commercial properties to tenants, which generates rental income. The trust's properties are situated in prime locations, allowing it to attract a diverse range of high-profile tenants from various sectors, thereby ensuring a steady flow of rental revenue. Additionally, OUE C-REIT may engage in asset enhancement initiatives to increase property values and rental rates, further boosting revenue. The trust also explores strategic acquisitions to expand its portfolio, thus enhancing its income-generating capacity. Partnerships with property management firms and real estate developers may also contribute to operational efficiencies and cost savings, positively impacting the trust's earnings.

OUE Commercial Real Estate Investment Trust Financial Statement Overview

Summary

Overall, OUE Commercial REIT faces profitability challenges despite modest revenue growth and a solid cash position. The balance sheet shows stability but highlights leverage risks, which could impact future financial flexibility. Cash flow generation is robust, yet the decline in free cash flow warrants attention. Addressing profitability issues and managing leverage will be crucial for future stability.

Income Statement

The income statement reveals a challenging financial landscape for OUE Commercial REIT. Despite a revenue increase of 3.67% from the previous year, profitability metrics such as the gross profit margin and net profit margin have deteriorated. The net income has shifted from a positive $200 million in 2023 to a negative $68 million in 2024, primarily impacting the net profit margin adversely. This signifies substantial profitability challenges, although the revenue growth is a positive indicator.

Balance Sheet

The balance sheet demonstrates a modest level of stability, with stockholders' equity representing about 57.2% of total assets, indicating a reasonable equity ratio. However, the high debt-to-equity ratio of 0.62 signals potential leverage risks, especially given the downturn in net income. Positive factors include a robust cash position and a slight reduction in total debt.

Cash Flow

Cash flow analysis shows resilience, with a strong operating cash flow that substantially exceeds net income, indicating effective cash generation from operations. However, the free cash flow has decreased by 12.93% from the previous year, reflecting potential future investment or operational challenges despite healthy operating activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	388.56M	295.52M	285.06M	241.51M	249.88M	292.01M
Gross Profit	314.63M	216.98M	217.31M	180.16M	184.65M	230.40M
EBITDA	235.26M	209.10M	296.19M	369.79M	139.01M	39.80M
Net Income	280.64M	-68.32M	200.11M	275.57M	38.88M	-36.27M
Balance Sheet
Total Assets	6.07B	5.94B	6.07B	5.99B	5.83B	6.77B
Cash, Cash Equivalents and Short-Term Investments	58.94M	361.67M	54.23M	49.48M	59.55M	88.51M
Total Debt	2.11B	2.12B	2.08B	2.07B	2.01B	2.72B
Total Liabilities	2.31B	2.28B	2.29B	2.28B	2.24B	2.99B
Stockholders Equity	3.51B	3.40B	3.52B	3.45B	3.34B	3.54B
Cash Flow
Free Cash Flow	214.64M	176.54M	202.78M	135.73M	109.90M	226.56M
Operating Cash Flow	225.21M	200.62M	213.39M	183.53M	166.80M	234.36M
Investing Cash Flow	-5.52M	287.72M	1.46M	-30.85M	902.52M	-7.00M
Financing Cash Flow	-211.25M	-180.40M	-208.94M	-159.12M	-1.10B	-200.50M

OUE Commercial Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.32 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.30, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, 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	S$1.49B	6.57	6.96%	0.21%	11.38%	-10.78%
BUOU	70 Outperform	$3.36B	24.93	3.21%	8.15%	11.98%	―
F17	69 Neutral	€1.95B	16.48	2.74%	3.39%	-10.37%	-39.46%
Sector *	62 Neutral	AU$3.09B	13.40	3.06%	5.03%	25.30%	99.36%
TS0U	60 Neutral	S$1.76B	8.06	-2.15%	6.49%	-11.65%	-137.98%
9A4U	56 Neutral	$2.21B	―	-4.88%	6.84%	10.51%	-40.93%

OUE Commercial Real Estate Investment Trust Corporate Events

OUE REIT Secures S$100 Million Credit Facility

OUE Commercial Real Estate Investment Trust has announced a new revolving credit facility agreement worth S$100 million, which will be used for general corporate funding purposes such as capital expenditure, working capital, and debt refinancing. The agreement includes specific provisions related to the ownership interests of OUE Limited, requiring mandatory prepayment if certain conditions are not met, which could impact the trust’s financial strategies and stakeholder interests.

OUE REIT Issues New Units to Settle Base Fee

OUE REIT Management Pte. Ltd. has announced the issuance of 6,697,663 new units in OUE Real Estate Investment Trust at an issue price of S$0.2927 per unit. This issuance is part of the payment for 50% of the Base Fee for the period from April to June 2025, with the units being sold directly to OUE Limited. The move reflects the company’s strategy to manage its financial obligations through equity issuance, potentially impacting its market positioning and stakeholder interests.

OUE REIT Completes Redemption and Cancellation of S$100 Million Notes

OUE Real Estate Investment Trust announced the full redemption and cancellation of S$100,000,000 4.0% notes due 2025, originally issued under its S$2,000,000,000 multicurrency debt issuance program. This move signifies the company’s commitment to managing its financial obligations and could impact its financial strategy and market positioning.

OUE REIT Records Minutes of 2025 AGM

OUE REIT Management Pte. Ltd. announced the recording of the minutes from its eleventh annual general meeting held on April 22, 2025. The meeting, which took place at Hilton Singapore Orchard, did not receive any substantial questions from unitholders in advance, indicating a smooth proceeding without major concerns from stakeholders.