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OUE Commercial Real Estate Investment Trust (SG:TS0U)
SGX:TS0U
Singapore Market

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

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OUE Commercial Real Estate Investment Trust

(SGX:TS0U)

Rating:55Neutral
Price Target:
OUE Commercial REIT's overall stock score reflects significant profitability issues and leverage risks despite stable cash generation and a decent dividend yield. The technical indicators suggest a neutral trend, but the negative P/E ratio is a major concern. Addressing profitability and leverage will be key to improving future performance.

OUE Commercial Real Estate Investment Trust (TS0U) vs. iShares MSCI Singapore ETF (EWS)

OUE Commercial Real Estate Investment Trust Business Overview & Revenue Model

Company DescriptionOUE C-REIT is a real estate investment trust listed on the Main Board of Singapore Exchange Securities Trading Limited since 27 January 2014. OUE C-REIT completed the merger with OUE Hospitality Trust in September 2019 to become one of the largest diversified REITs with total assets of S$6.8 billion. With seven properties across the commercial and hospitality segments in Singapore and Shanghai, OUE C-REIT's property portfolio comprises approximately 2.2 million sq ft of prime office and retail space, and 1,640 upscale hotel rooms. OUE C-REIT invests in income-producing real estate used primarily for commercial purposes (including real estate used primarily for office and/or retail purposes) in financial and business hubs, and/or hospitality and/or hospitality-related purposes, as well as real estate-related assets. OUE C-REIT is managed by OUE Commercial REIT Management Pte. Ltd., which is a wholly-owned subsidiary of OUE Limited.
How the Company Makes MoneyOUE Commercial Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of office and retail properties. The trust leases out space to a diverse mix of tenants, including multinational corporations, financial institutions, and retail businesses. Additionally, OUE C-REIT benefits from asset enhancement initiatives that aim to increase the value and rental income potential of its properties. The trust may also engage in strategic acquisitions and divestments to optimize its portfolio and enhance returns. Ancillary income from car park operations and other property-related services contributes to its overall revenue.

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
55
Neutral
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
65
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue388.56M295.52M285.06M241.51M249.88M292.01M
Gross Profit314.63M216.98M217.31M180.16M184.65M230.40M
EBITDA235.26M209.10M296.19M369.79M139.01M39.80M
Net Income280.64M-68.32M200.11M275.57M38.88M-36.27M
Balance Sheet
Total Assets6.07B5.94B6.07B5.99B5.83B6.77B
Cash, Cash Equivalents and Short-Term Investments58.94M361.67M54.23M49.48M59.55M88.51M
Total Debt2.11B2.12B2.08B2.07B2.01B2.72B
Total Liabilities2.31B2.28B2.29B2.28B2.24B2.99B
Stockholders Equity3.51B3.40B3.52B3.45B3.34B3.54B
Cash Flow
Free Cash Flow214.64M176.54M202.78M135.73M109.90M226.56M
Operating Cash Flow225.21M200.62M213.39M183.53M166.80M234.36M
Investing Cash Flow-5.52M287.72M1.46M-30.85M902.52M-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 Price0.30
Price Trends
50DMA
0.29
Positive
100DMA
0.28
Positive
200DMA
0.28
Positive
Market Momentum
MACD
<0.01
Negative
RSI
66.16
Neutral
STOCH
100.00
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 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.16 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$7.01B18.92-1.36%6.84%4.67%-25.39%
55
Neutral
S$1.65B8.06-1.97%7.53%-1.51%-135.46%
$1.53B-6.38%0.48%
$2.55B25.363.21%4.46%
DEFS8
€1.14B13.672.74%3.90%
SGA26
74
Outperform
S$1.49B6.576.96%0.21%11.38%-10.78%
SGH13
S$1.33B12.123.01%2.00%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:TS0U
OUE Commercial Real Estate Investment Trust
0.30
0.05
20.00%
CGIUF
ESR-REIT
1.74
-0.14
-7.45%
FRLOF
Frasers Logistics & Commercial Trust
0.68
0.02
3.03%
DE:FS8
GuocoLand Limited
1.01
0.03
3.06%
SG:A26
Sinarmas Land Limited
0.38
0.23
153.33%
SG:H13
Ho Bee Land Limited
2.00
0.18
9.89%

OUE Commercial Real Estate Investment Trust Corporate Events

OUE REIT Completes Redemption and Cancellation of S$100 Million Notes
Jun 24, 2025

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.

The most recent analyst rating on (SG:TS0U) stock is a Buy with a S$0.40 price target. To see the full list of analyst forecasts on OUE Commercial Real Estate Investment Trust stock, see the SG:TS0U Stock Forecast page.

OUE REIT Records Minutes of 2025 AGM
May 21, 2025

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.

The most recent analyst rating on (SG:TS0U) stock is a Buy with a S$0.40 price target. To see the full list of analyst forecasts on OUE Commercial Real Estate Investment Trust stock, see the SG:TS0U Stock Forecast page.

OUE REIT Issues New Units as Base Fee Payment
Apr 29, 2025

OUE REIT Management Pte. Ltd. announced the issuance of 6,861,047 new units in OUE Real Estate Investment Trust at an issue price of S$0.2830 per unit. These units were issued as partial payment for the Base Fee for the first quarter of 2025 and will be sold to OUE Limited. This issuance increases the total number of units in issue to 5,506,924,855, reflecting the company’s ongoing financial strategies and its relationship with OUE Limited.

OUE REIT Achieves Steady Performance Amid Lower Financing Costs
Apr 24, 2025

OUE REIT reported a steady operating performance in the first quarter of 2025, highlighted by an 11.3% year-on-year reduction in financing costs. Despite a 11.9% decline in revenue due to the divestment of Lippo Plaza in Shanghai and weaker contributions from the hospitality segment, the company maintained strong occupancy rates and positive rental reversions in its commercial and office segments, underscoring the resilience of its Singapore portfolio.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 24, 2025