Overseas Union Enterprise

[winston]

vested

OUE's Q1 net profit up by 23.3% By TEO SI JIA

Overseas Union Enterprise Limited (OUE) announced on Monday its net profit for the first quarter rose 23.3 per cent to S$227.60 million.

Revenue rose 42.2 per cent to S$68.24 million.

A higher revenue reported by the Hospitality and the Property Investment division and lower operating expenses resulted in the increase in revenue.

OUE's hospitality and retail businesses are expected to reap the benefits of the projected increase tourist arrivals this year while office rental rates are expected to increase.

Source: Business Times

http://www.businesstimes.com.sg/sub/lat ... 19,00.html?

[winston]

vested

Overseas Union Enterprise [ PDF]
Income surge imminent - by Donald Chua
(OUE SP / OVES.SI, OUTPERFORM - Maintained, S$3.03 - Tgt. S$4.16, Property Devt & Invt)

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1Q11 core net profit of S$21m forms 16% of our FY11 estimate and 15% of consensus. While there were maiden full-year contributions from DBST, revenue from Crowne Plaza and OUE Bayfront has yet to come through and is expected to spur recurring income in later quarters. 2012 is expected to be the inflexion point.

Net gearing remains firm at 0.45x, boosted by the upward revaluation of OUE Bayfront to market values. We continue to like OUE for the quality of its investment properties and pure focus on Singapore.

With the residential segment clouded by policy uncertainties, we believe OUE's prime commercial and hotel portfolio could receive the limelight. Higher achieved rents and RevPAR, and more acquisitions should form stock catalysts.

Our earnings estimates and target price of S$4.16 (10% discount to RNAV) are unchanged.

[winston]

vested

OUE - Q1 net profit rises 23%, revenue leaps 42%

OVERSEAS Union Enterprise (OUE) yesterday posted stronger results for the first quarter ended March 31 as earnings from its hospitality and property investment businesses grew, and fair-value gains on investment properties increased.

Revenue jumped 42 per cent from a year ago to $68.2 million. A large part of the top line came from the hospitality division which contributed $45.2 million - up 12 per cent year on- year.

Another $22.5 million came from rental income from investment properties. This is about three times that of last year's $7.3 million, boosted by the acquisition of DBS Towers One and Two.

The property development division brought in $0.4 million, as it recognised revenue from the sale of Twin Peaks.

OUE also benefited from a $249.2 million fair-value gain on investment properties, which is 85 per cent higher than that a year ago. This had to do with OUE Bayfront obtaining its Temporary Occupation Permit in January.

Net profit in Q1 came up to $227.6 million, rising 23 per cent year-on-year. Earnings per ordinary share was 23 cents, exceeding last year's 19 cents.


Source: The Business Times

[winston]

vested

Buy maintained with a S$4.55 target price

OUE is bullish on the hotel and office segments and plans to complete another acquisition by year end.

Given its strong track record, we expect the acquisition be positive.

We like OUE’s 74% RNAV office and hotel exposure and reiterate our Buy rating and S$4.55 TP.


Source: RBS

[winston]

Vested

Overseas Union Enterprise- 1Q11: Expect higher earnings ahead.
(BUY/S3.08/Target: S$4.30)
FY11F P/E (x): 22.8
FY12F P/E (x): 14.9

Overseas Union Enterprise (OUE) reported 1Q11 net profit of S$225.4m (+22.7% yoy), boosted by a fair value gain of S$249m from OUE Bayfront. Core earnings of S$20.7m were below our expectations, representing 14% of our full-year forecast, mainly due minimal income recognition from its development property, Twin Peaks.

Maintain BUY and target price of S$4.30, pegged at parity to 2011F RNAV and takes into account a 20% premium for the office and hotel portfolio, a 20% discount for the retail and residential portfolio, and other competitive strengths and risk factors. The stock is currently trading at a steep 28% discount to our 2011F RNAV/share of S$4.30.

Source: UOBKH

[winston]

Vested

Buy (Maintained)
Closing Price S$3.08
Target Price S$4.13 (+34.1%)

Major Shareholders %
1 OUE Realty Pte Ltd 51.19
2 Golden Concord Asia Ltd 10.45
3 Credit Suisse Group 6.89

• 1Q11 revenue at $68.24mil, increased 42.2% y-y. PATMI $227.6mil, increased 23.3% y-y. Results were in-line with expectations; new income stream from completed office tower and newly acquired hotel should pace earnings closer to our FY11 estimates.

• Management continues to look out for strategic acquisitions in Singapore, and to expand hotel management contracts overseas.

• Maintain Buy with fair value unchanged at S$4.13.

Source: Phillips

[winston]

Vested

RPT-S'pore's OUE appoints Credit Suisse, Merrill for $750 mln REIT

SINGAPORE, May 13 (Reuters) - Singapore property firm Overseas Union Enterprise has hired Credit Suisse and Bank of America Merrill Lynch to advise on a planned property trust IPO in the fourth quarter that will raise about $750 million, three sources with knowledge of the deal said.

The planned real estate investment trust (REIT) will contain hotel assets held by OUE, which include the Mandarin Orchard Hotel and Crown Plaza Changi Airport in Singapore and the Meritus Mandarin Haikou and Meritus Shantou in China.

"The REIT is planned in Q4," said a source with direct knowledge of the deal." The amount will be close to $750 million." OUE, controlled by Indonesia's Lippo Group, is a diversified Singapore property group with assets in Singapore and China.

OUE's management was not available for comment, while the banks declined to comment.

Source: Reuters

[cif5000]

They are smart people. Crowne Plaza deal isn't completed yet and they have already started working on the next move.

[winston]

Mar 9, 2011


Aftermath of share financing: a good educational process.

We believe the selldown of late was partly the result of Mr Riady’s recent refinancing/hedging, whereby 42m OUE shares were used to refinance debt obligations, also at the vendor level.

Credit Suisse was the counterparty. The shares were subsequently placed out to institutional investors at a purported price of S$3.35 apiece. Due to confidentiality agreements, details could not be shared with the public.

We note that he had openly expressed his willingness to pare down his stake in OUE closer to 51% since acquiring a majority position last year.


http://www.remisiers.org/cms_images/OUE-0903111.pdf

It's good that CS would now be working on their Hotel Reit

And none of the "expert" analysts have commented on the Convertible Bonds till date other than the one above, saying that it was a "good educational process"

What is a good educational process ??

[stilicon]

In Newspeak, a "good educational process" means taking a beating !