Brokers' take

OUE Commercial Reit | Hold Jan 9 close: S$0.745 Fair value: S$0.67 OCBC Investment Research, Jan 9

ON the back of a nascent recovery for the office market in Singapore in 2017, we see robust sentiments extending into 2018.

Despite the sector tailwinds, we are cognisant that the expiry of OUE Bayfront's income support is now within a one-year horizon (Jan 2019). As a recap, this income support involves the sponsor providing a top-up of the gross rental income of the property should it fall below S$14.25 million in a quarter, subject to maximum annual and aggregate limits of S$12.0 million and S$50.0 million, respectively.