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Overview
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Business Background OUE Limited, a diversified real estate company, owns, develops, and operates real estate portfolio located in prime locations in Asia and the United States. It operates through Hospitality, Property Investments, Property Development, Fund management, and Investment Holding segments. The company develops and manages landmark assets across the commercial, hospitality, retail, and residential sectors primarily in Singapore. It also operates hotels; retails and leases retail spaces and office properties; develops and sells residential properties; and manages real estate investment trusts. The company was formerly known as Overseas Union Enterprise Limited and changed its name to OUE Limited in August 2013. The company was incorporated in 1964 and is based in Singapore. OUE Limited is a subsidiary of OUE Realty Pte. Ltd.
  Lansford Loo NAV per share of OUE C-REIT: $1.02 (unaudited Dec 2013) Issue Price: $0.80 (discount of 21.8%) Loss to sponsor, OUE on per share basis: -$0.10 Essentially, OUE trying to sell apart of their assets to the market cheaply. Thus this is the key reason why OUE drops. So why did OUE C-REIT drop? Reason why investors would buy REIT? For stable yields. Lets look at the yield quality of OUE C-REIT: 1. REIT manager: OUE. Can OUE get more properties for the REIT at discounted prices or get more yield accretive properties to justify the 0.3% base management fee + 25% performance fee? 2. Can OUE C-REIT sustain the 6.8% yield they claimed on the front page of the prospectus? (see pg 42) without income support the yield drops to 5.56% (see pg 85) net income S$32, but pay S$47m in distribution using unit-holder contributions? what you pay for, they just return it straight to you? [note: stable yield prob only 2-3%] stabilizing manager? or price support manager? c.5% of the units can be utilized in stabilization. looks like if you're participating the IPO, you are banking on the work of the stabilizing manager. for more analysis on different stock please visit: our fanpage: https://www.facebook.com/AcaciaTradingSingapore our blog: http://lansfordloo.wordpress.com/ and like our page. Thanks! Acacia Trading is a Preeminent Training Institution that aims to provide financial freedom to its students through its unique and proprietary training methodology. We utilize events-driven fundamental analysis that teaches our students how to capitalize on both long and short views on opportunities to maximize gains. Disclaimer: We do not hold shares in the stocks that are listed in our ideas unless specifically stated. The recommendations stated above are general recommendations and may not be suitable for your portfolio. Please contact your financial adviser prior to taking action on the ideas above. All ideas are provided for discussion purposes only. We will not accept any liability for losses that are sustained as a result of you following our ideas. The ideas are provided on a good faith basis, please conduct your own due diligence on the ideas prior to taking action. We iterate that we are a training academy and are only bound to our students who we have an express contract with. That said, please free feel to comment and discuss on the ideas above. Cheers, Acacia Trading. 28/01/2014 8:34 AM  |
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