Brokers' take

OUE Limited | Buy (maintained) Feb 28 close: S$1.65 Fair value: S$2.32 OCBC Investment Research, Feb 28

OUE Limited's FY2018 revenue fell 14.7 per cent to S$642.9 million, largely due to lower contribution from the group's property development arm. Profit after tax and minority interests recorded a 89.4 per cent drop to S$10 million, on the back of one-offs. We deem this set of results to be broadly under expectations.

The group has proposed a special dividend of 11 Singapore cents.

Moving forward, we believe that the group should be able to book revenue relating to OUE Twin Peak units under deferred payment schemes of S$280 million and S$130 million in 2019 and 2020, respectively. Given that Oakwood Premier has obtained its hotel licence in Jan 19, we believe that a possible divestment to OUE Hospitality Trust could be on the cards this year. In downtown Los Angeles, OUE is looking to divest its US Bank Tower, while also actively looking for an opportune time to cash in on some of its investments to help …