I Sold Off This REIT which Analysts are Bullish On

Disclaimer: I am not a financial adviser. This Post is neither a Buy or a Sell Recommendation. I am  only sharing my opinion on a company stock and this Post is purely for entertainment purposes only. Always DYODD before making a trade decision. 😀

Goodbye OUE-H
The stock which I liquidated was none other than OUE Hospitality Trust.

See. I Sold Off!

Check out this link https://sginvestors.io/sgx/reit/sk7-oue-htrust/analyst-report to hear what analysts have to say about this REIT.

Analysts are bullish and I sold. I Siao (Crazy)?

Background and Dividend Yield

I bought 10000 shares of OUE Hospitality on 5th July 2016. My purchase price was $0.69. Based on my purchase price, my current yield forecast would still be attractive at above 7%. However at the price that i sold, my forecast yield is only 5.91%. This yield is actually not that attractive for a hospitality REIT in my opinion.

We can also compare the dividend yield with it's peers. The current forecast yield seems to be lower compared to others.

Price was based on 9-2-2018's Closing

Fundamental

Next, let's look at it's latest financial result. Here are some points worth mentioning.

6.6% Decrease in DPU for 4Q 

Retail segment is not doing that well

Income available for distribution was $1 million lower than 4Q2016 due to absence of income support. Although revenue was up $0.6 million compared to a year ago,. overall performance was worse!

The NAV is $0.76. The closing price on 9-2-2018 was trading above this value. I am not exactly interested in paying such a high premium for this REIT especially during this market correction.

Premium as in overvalue? The screenshot was taken from OUE-H's presentation slide. 

Gearing seems to be on the high side.

If you are interested to read the financial results, check out their Investor Relations link here.

I have gone through their Presentation Slides and I didn't find any factors that would made me want to stay vested in this REIT. This concludes my blog post on why I sold off OUE Hospitality Trust.

Just a joke. Not hinting anything. 😀