OUE Commercial Trust is one of the REIT which I am watching closely. The rise of one of my key assets (AIMSAMP REIT) has prompt me to monetize it and change it to something else. And this is one of those which I am considering.
Yield is at 7.15% which is very stable given that there is income support scheme. I have checked and the income support would last for four years which is very long and provided stability. Another advantage which you hardly see today is its price-to-book ratio which is at 0.754 and it is probably the best in the market. With these two criteria in place, this is a strong candidate.
OUE Bayfront has a valuation of $0.75 while Lippo Plaza has a valuation of $0.31. Thus, with a trading price of $0.80, I believe I will be paying $0.675 for OUE Bayfront (which is comparable to other office REITs which has a price-to-book ratio of about 0.90) and $0.125 for Lippo Plaza. This means I am getting Lippo Plaza at a steep discount, if I buy. For thoughts.
As the amount is fairly large (about $50,000), I need to consider more carefully before I make a move.