I find it quite surprising why there isn't much talking point about OUE. With its recent asset spin off to OUE Trust, it has been rumored that a special dividend of about 30 cents per share is coming up.. At share price of 2.85 present, it would represent a 10% special yield. This excludes the usual dividend OUE will be giving out..
In addition, its current share price is at a 20% discount to its NAV. However, its recent q1 report reflects a drop in profits due to increase in finance and admin cost etc. Nevertheless,its revenue still enjoyed a rise. An important note is that OUE has still consistently gave out dividends in May 2013.
Back to its recent asset spin off, it is likely to improve its gearing ratio and debts will be significantly reduced. At the same time, finance cost would be reduced which is gd news since interest rates is likely to increase based on reports.
OUE also has a diversified portfolio ranging from retail to commercial to hospitality in different countries. Revenue is produced from different sources. An area affected might not be too detrimental to the group as a whole.
An imminent special dividend will definitely bring rise to its current share value. It represents a good investment now from my point of view..
Signing off
SGBoy94
No comments:
Post a Comment