OUE Commercial REIT's OUE Bayfront in Singapore. (Photo: REITsWeek)OUE Commercial REIT's OUE Bayfront in Singapore. (Photo: REITsWeek)

OCBC Investment Research has maintained its ‘Hold’ rating on Singapore-listed OUE Commercial REIT, citing its 3Q 2016 results that came in largely within expectations.

The office REIT reported on 1 November that it has achieved a 29.4% increase in DPU for the quarter, on the back of a 127% increase in net property income that came in at SGD35.3 million (USD25.5 million).

OCBC has noted that the increases are largely due to an absence of income from One Raffles Place, which was acquired in October 2015, in the same period last year, and improved performance at OUE Bayfront and Lippo Plaza.

Without the contributions from One Raffles Place, the REIT’s net property income would have grown by 8.5%.

“We judge this set of results to be broadly within expectations and 9M16 distribution now forms 81.4% of our full year forecast”, said OCBC.

The bank has also maintained its estimated fair value of SGD0.65 for units of the REIT.

Units of OUE Commercial REIT last changed hands on the Singapore Exchange at SGD0.69.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.