OUE Commercial REIT reported a 4Q15 distributable income and DPU of S$17.6m and 1.36 S-cents, which were 21.1% and 20.4% higher than the Circular Forecast, respectively, due to better operating performances across the portfolio, lower utilities costs incurred by OUE Bayfront and One Raffles Place, and also lowerthan-forecasted finance costs. In terms of the topline, 4Q15 revenues came in at S$40.3m which was similarly 4.2% higher than the Circular Forecast.

We judge this set of results to be broadly within expectations. Note that that trust had acquired an interest in One Raffles Place in Oct 2015, which put in its maiden contribution over the latest quarter. We will speak with management about the results later today and, in the meantime, we put our Hold rating and fair value estimate of S$0.84 UNDER REVIEW.

Source: OCBC Research - 27 Jan 2016